CAD

The Canadian annualized Gross Domestic Product expected .6% for the 2nd quarter, came in worse than expected at 0.3% on an Annualized basis. The 1st quarter was revised to -0.8%.  The month over month reading was on the money at .1% versus the .1% survey. 

The lower number increases the chance that the BOC may cut rates at next weeks rate decision meeting   It should at least change some of the wording as to the central banks position.  This should keep the pressure on the Caandian dollar. 

The Industrial Price Index for July expected at .7% came in lower at .4%. The Raw Materials Price Index expected at .2% came in significantly higher at 1.4%.

Canadian Prime Minister Harper notes there are no signs of a real recession. He added the following:

• Harper adds that income growth is significant; employment is staying at high levels.
• 2 consecutive quarterly GDP declines are not a recession.
• Employment numbers are softening but remaining quite high.

The Canadian Unemployment Rate came in weaker than expected at 6.1% and worse than last month (6.2%), while the Net Change in Employment was -55K the worst reading since Feb of 1991, much worse than the +5K survey. CAD dollars sold off across the board.

USD/CAD ranging as well, with Oil relatively unchanged. It's down a little for the day thus far, about -.80 @ 126.54 indicatively.

USD/CAD looking offered from its down trend line on an hourly. Stochastics as well are nearing negative convergence. Out of all the USD pairs, this appears to be the weakest.

USD/CAD trying to recover some ground after such a jagged sell off the other day. Right now, it's consolidating higher, trying to take out some resistance levels above.

The CAD Employment Change number comes in LOWER at 14.6k from the previous 43.3K.  This number was forecast at 15.0K.

The CAD Unemployment Rate come in HIGHER at 6.0% from the previous 5.8%.  No change was expected.

The USDCAD rose about 30 PIPS initially while the EURCAD jumped about 50 PIPS

Canada's February  Unemploymnet rate unchanged at 5.8 % (Below epectations of 5.9 %) Emplyment Change +43.3k (expected +0.3K)

USDCAD plunges over 50 bps on the MUCH HIGHER than expected employment number.

Employment growth in February was in construction, public administration and professional, scientific and technical services. On the downside there was declines in manufacturing and natural resources.

The CAD GDP m/m comes out at -0.7% from the previous 0.1%.  This number was forecast to be at -0.2%.  On a quarterly basis the 4 quarter growth was 0.8% down from 2.9% the 3rd quarter.  This was the slowest since 2003.

CAD Current account came out at -.5B from the previously revised 1.34B.  The forecast was 0B, so this number is lower than the previous and expectation,  which is known to have a negitive effect on the CAD.  This is the first current account deficit since 1999 on the CAD.

The IPPI (Industrial Product Price Index) came out at .9% from the previous 1.1%.  The forcast was .8%.  This number measures the rate of inflation for goods.