Canada Q2 GDP +3.3% vs +4.4% expected

• Prior was +3.1%
• GDP +0.8% q/q vs +0.8% prior
• Implicit price rise +3.3% q/q vs +2.9% prior (revised to +3.0%)
• GDP m/m +0.1% vs +0.1% expected
• Prior m/m reading 0.0%
• Inventories +$47.0B
• Nominal GDP rose 4.2% q/q
• Compensation for employees +2.0% q/q
• Full report

USD/CAD is up 36 pips today to 1.3130 and this isn't helping. But the main driver is the two-day plunge in oil prices. That's continued today with crude down $2.56 to $89.08 or rumors of an Iran deal.

The gain was in GDP was driven by increased inventories, non-residential construction, machinery and equipment investment, and household spending on services and semi-durable goods. This was the fourth consecutive quarterly increase in real GDP.

Growth in the second quarter was moderated by declines in housing investment, household spending on durable goods and by net trade.

Nomainal GDP growth was impressive but inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is a drag.

GDP contributions: