Even though Canada’s monthly GDP number was negative, it was still less than anticipated, the economy is still showing signs of resilience despite what economists had thought. On the U.S. side of the border. Pending home sales blew expectations out of the water, the 8% jump in monthly sale was the highest since 2005, economists had called for a 1% drop in sales. This ongoing buying spree will have a definite impact on the Federal Reserve, it’s one thing to have strong sales but it’s different when the house prices jump out of proportion to the overall economic conditions. The same applies in Canada, expectations for a slow down in home sales is on the horizon, whether that happens, we shall have to wait and see.
Expect the CAD to trade on the weaker side to the USD.
Currently* Close Range
USDCAD 1.2401 1.2401 1.2355-1.2423
EURCAD 1.4700 1.4751 1.4695-1.4772
GBPCAD 1.7120 1.7154 1.7090-1.7191