Loonie erases gains on soft GDP report

The Canadian dollar erased most of its gains after the February GDP report showed a monthly decline of -0.1%, missing expectations of a flat reading, while the year-over-year print came in at 1.1%, down from 1.6% much softer than the 1.4% eyed.  Continued weakness in the mining,oil and gas sector saw a 1.6% monthly decline.  Transport and warehousing also gave the worst decline since 2011.  Overall output contracted in 9 of the 20 industrial sectors.

Overall weakness in the dollar saw buyers come in for the loonie following the soft GDP print.  USD/CAD trades 0.1% lower at 1.3438

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Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya