- Canadian economy performed much worse than expected in Q4.
- USD/CAD rises toward 1.3600 following the disappointing GDP data.
The Canadian economy stagnated in the fourth-quarter with the annualized real Gross Domestic product (GDP) growth arriving at 0%. This reading followed the 2.3% expansion recorded in the third quarter and missed the market expectation for a growth of 1.5% by a wide margin.
On a monthly basis, real GDP in Canada contracted by 0.1%.
Statistics Canada explained slower inventory accumulations and declines in business investment in machinery and equipment were behind the poor economic performance in Q4.
Market reaction
USD/CAD edged higher with the initial reaction and was last seen posting small daily gains at 1.3585.
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