The U.S. economy grew at an annualized rate of 2.5% in the first quarter of the year. Consumer spending during that time rose at a 3.2% rate but government spending cuts had a negative effect on growth. Analysts had estimated a 3% growth so the shortfall was disappointing for the USD. Due to negative employment indicators in Europe the EUR was not able to capitalize on USD weakness. On the other hand the USD was able to advance versus the JPY as deflation continues to grow and there are questions around the Bank of Japan’s policy being successful in a 2 year timeframe.
Jobless claims in the United States fell more than expected which boosted the hopes of a recovery before the GDP figures came out. Next Friday the Non-farm payrolls will be published and there will be a lot of expectation on the economic release as it could solidify the perception of a US recovery.
In Canada the deputy governor of the central bank Tiff Macklem stated that he would serve as the Bank of Canada’s governor if asked. After Mark Carney moves to the UK to take over presiding over the Bank of England there hasn’t been a strong candidate mentioned from outside the CB forward to succeed him.
- US Economy Grows Faster but Misses Expectations 
- Short Interest in US increase 
- USD/CAD Moves to Below 1.02 on Economic Growth Signs 
- Canada-Europe Trade Negotiations Back on Track 
- U.S. Jobless Claims Fall More than Expected 
- Bank of Canada Senior Deputy Raises Hand for Governor Role 
- USD/CAD at 1.0260 as Global Slowing Dims Export View 
- Bernanke to Miss Jackson Hole in Aug. Hint of No 3rd term at the Fed? 
- BOC Carney: Canada Company Spending Likely to Rebound With U.S. 
- US Growth Likely to have Picked Up in First Quarter 
- US Stocks Posting Weak Earnings Results 
- 3M Fails to Meet Market Expectation Blames Strong Dollar 
- U.S. Durable Goods Drop in March as Demand Slumps 
- IMF Sees Three Speed Global Recovery 
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