Dollar climbs in the Canadian economy grew in April at the fastest pace this year

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.

£ British economy decreased by more than initially estimated

THE TAKEAWAY: UK GDP for Q1 Revised Lower to - 0.3% from - 0.2%-> New pressures for BoE to raise stimulus-> Cable briefly drops
The UK economy shrank more in the first quarter than was initially estimated last month. Data released today corrected the drop in GDP from - 0.2% to - 0.3% when compared to the previous quarter. Year over year, the GDP for the quarter dropped - 0.1% instead of staying level as was first released by the Office for National Statistics.
Construction experienced the biggest slowdown during the quarter, dropping by - 4.8% compared to the Q4 of 2011.
Two straight quarters of economic slowdown means the UK has entered a technical double dip recession. While the Bank of England decided to keep their stimulus program unchanged in the May's meeting, the International Monetary Fund has called on the BoE to increase its bond purchasing program to stimulate growth in the struggling economy.


Cable took an initial drop towards today's two month low at 1.5637 following the weaker GDP, but the pair bounced back above yesterday's low soon after.