Canada Gross Domestic Product: Unexpected contraction hits USD/CAD

• The Q3 Canadian Gross Domestic Product contracted 1.1% from a year earlier.
• Canada will publish its monthly employment report on Friday, introducing further noise in USD/CAD.
• USD/CAD advances with the news as the CAD suffers from the negative surprise.

Canada’s Real Gross Domestic Product (GDP) edged up 0.1% MoM in September, better than the flat reading anticipated by financial markets. The Q3 annualized reading, however, posted a sharp 1.1% slide, much worse than the 0.2% advance anticipated by financial markets. The quarterly reading posted -0.3%, contracting from a 0.3% gain in Q2.

On Friday, Canada will publish its monthly employment report, expected to show an Unemployment Rate of 5.8%.

USD/CAD ticked north with GDP figures, as investors lifted bets on an on-hold Bank of Canada amid higher risk of recession.