The Takeaway: [the faster growth of Canadian GDP this year in April] > [Pickup in mining and oil and gas activity] > [CAD strengthens]
The Canadian economy grew at a faster pace than expected in April, led by increased activity in the mining and oil and gas extraction sector. The gross domestic product (GDP) of the Canada increased by 0.3% in April, the fastest on the months rate this year, after cutting of 0.1% in March. On an annual basis, GDP expanded 2.0% in April, after growth of 1.7% in each three months previously. Forecasts of the consensus of economists surveyed by Bloomberg News had called for growth of 0.2 per cent on a month and an annualized 1.8 percent growth rate.
According to a report published by Statistics Canada, mining and oil and gas extraction has rebounded in April after that of temporary stops the difficulties of mining production and led to a slowdown in February and March. Mining and oil and gas extraction increased by 2.7% in April after decline of 2.0% in February and 1.1% in March. Trade in large trade rose 1.2% in April, climbing for the fifth month running. During this time, production decreased by 0.3% and construction decreased by 0.1% in April.
Chart 1-minute USDCAD: 29 June 2012
Graph created with the scope of the market - prepared by Chen Wen - Tzu
Immediately after the output, the stronger Canadian dollar against the U.S. dollar as the strongest GDP increases support for a rate hike by the Bank of Canada in the coming months. At the time of this report, the pair USDCAD was trading at C$ 1.0167.
The Canadian economy grew at a faster pace than expected in April, led by increased activity in the mining and oil and gas extraction sector. The gross domestic product (GDP) of the Canada increased by 0.3% in April, the fastest on the months rate this year, after cutting of 0.1% in March. On an annual basis, GDP expanded 2.0% in April, after growth of 1.7% in each three months previously. Forecasts of the consensus of economists surveyed by Bloomberg News had called for growth of 0.2 per cent on a month and an annualized 1.8 percent growth rate.
According to a report published by Statistics Canada, mining and oil and gas extraction has rebounded in April after that of temporary stops the difficulties of mining production and led to a slowdown in February and March. Mining and oil and gas extraction increased by 2.7% in April after decline of 2.0% in February and 1.1% in March. Trade in large trade rose 1.2% in April, climbing for the fifth month running. During this time, production decreased by 0.3% and construction decreased by 0.1% in April.
Chart 1-minute USDCAD: 29 June 2012
Graph created with the scope of the market - prepared by Chen Wen - TzuImmediately after the output, the stronger Canadian dollar against the U.S. dollar as the strongest GDP increases support for a rate hike by the Bank of Canada in the coming months. At the time of this report, the pair USDCAD was trading at C$ 1.0167.
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