Canadian Dollar Falls as GDP Slowdown


The Canadian Dollar underperformed against its major counterparts on Tuesday, also tracking a cautious deterioration in risk appetite. At one point, the S&P 500 was down about 0.6% before trimming some of its losses. USD/CAD inversely tracks stock markets. Interestingly, the Loonie was unable to capitalize on a strong performance in crude oil prices.

At 13:30 GMT, the latest Canadian GDP figures crossed the wires. Annualized quarterly growth clocked in at 2.9%, which was far greater than the 1.5% outcome. However, GDP was 0.1% m/m in September, in-line with expectations.

Meanwhile, August’s output was revised higher to 0.3% m/m from 0.1%. In effect, Canadian growth slowed, opening the door to a less aggressive Bank of Canada.

In the context of daily moves since the beginning of 2020, USD/CAD’s 0.7% rise on Tuesday was about 1.34 standard deviations from the average. Using a cumulative distribution function, the probability that CAD weakens by 0.7% or more is at least about 10%. Granted, past performance is not necessarily indicative of future output.

This Post Has One Comment

  1. sklep online

    Wow, superb blog structure! How lengthy have you been blogging for?
    you make blogging glance easy. The whole look of your site is magnificent, as smartly as the content!

    You can see similar here e-commerce

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us


Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.