Weekly Report of Canada Gross Domestic Product (GDP); Dec 5th 2022admin 8 December 2022
Gross Domestic Product (GDP) measures the annual changes in the inflation-adjusted value of all goods and services produced in the economy. This is the most extensive measure of economic activity and the primary indicator of economic health. Canada releases GDP data monthly.
Canada’s GDP index was published on November 29 at 5:00 p.m. at a rate of 0.01% which is 0.1 higher than the forecasts. It is also worth noting that the rate of this index was 0.1% last month.
After the publication of this index, we saw an increase in the value of the Canadian dollar in the markets.
Following a rise in Canada’s GDP release, the Canadian dollar’s parity against the US dollar rose to a three-week high.
USD/CAD rose to the level of 1.3400, which was the highest peak in the last three weeks. Due to the improvement in the value of US bonds and the softer tone of the Federal Reserve regarding the country’s monetary policy, we saw an increase in demand and the growth of this country’s currency. While Canada’s GDP data is one of the most influential indicators on the USD/CAD value, this currency pair started with a slight decrease at the beginning of yesterday’s trading session, but eventually climbed to the highest level in the last three weeks. It finished its work and was traded in the range of 1.3550-1.3545.
According to the report of Statistics Canada, the domestic economy of Canada grew by 0.1% in September and by 0.7% in the third quarter, which was 0.4% higher than expected. It offsets the annual growth of 2.9%, which was lower than expected. GDP data, along with a slight pullback in crude oil prices, has a direct impact on USD/CAD dependent commodities and acts as a driver.