Canadian GDP was firmer than expected in Q3, coming in +1.3% on an annualized rate. On the downside though, the implicit price index tumbled to 0.9% in Q3 from 2.6% in Q2. That is well below the BOC’s 2% target and imply more rate cuts to come.
USD/CAD is holding firm, trading at 1.2465 despite the strong headline data. Falling oil and metals prices along with a tad of political instability North of the Border are contributing to the weak Loonie tone.
There is very little in the way of chart resistance until the hugely important 1.3000 area where there are a pair of highs.
