In the Asian session on Thursday (June 1), USD/CAD fell to 1.3567, a drop of 0.07%. Analyst Stephen Brown believes that Canada’s GDP growth in the first quarter exceeded expectations at an annualized rate of 3.1%, and the preliminary data in April was strong, which increased the possibility of raising interest rates again. Weekly rate hikes are possible.
The latest from the Bank of Canada:
Canada’s initial forecast of GDP growth of more than 2.5% in the first quarter also exceeded the central bank‘s April forecast of 2.3%, although the central bank had previously made a small downward revision to the fourth quarter GDP, which now appears to have contracted by 0.1% in the fourth quarter. . Brown added that April’s 0.2% month-on-month GDP growth was stronger than expected given the negative impact of the government workers’ strike.
