Canadian monthly and quarterly GDP 29 May 2015

  • Prior 0.0%. The prior month was revised to -0.1%
  • Annualized came in at 1.5% vs 2.1% estimate. The prior month was revised lower to 1.9% from 2.1%.
  • Quarterly GDP annualized for the 1st quarter came in at a much weaker -0.6% vs. +0.3% estimate. The prior was revised down to 2.2% from 2.4%. This is the largest quarterly contraction since 2009
  • business investment dropped 9.7%.
  • Exports fall 1.1% in Q1, dropping for the 2nd straight quarter
  • US household spending up 0.4%. This was the smallest increase since 2009

The weaker data combined with the better-than-expected US GDP has push the USDCAD sharply higher. The pair is looking toward the high price level from yesterday at 1.2537 as the next upside target.

The only good news from the report is it is all behind in the 1Q, it was recognized as a weak quarter by Poloz previously.