Canada May GDP MoM 0.2% vs 0.1% estimate

• Prior month 0.3%
• May GDP 0.2 % vs 0.1% estimate. The Advanced GDP released with the April report was 0.1%
• June advanced GDP 0.1%. Construction, real estate, and rental and leasing and finance and insurance increased, with manufacturing and wholesale trade falling
• Services producing industries 0.1%
• Good producing industries 0.4%
• total of 15 of 20 sectors increased in May

Details

• Manufacturing sector (+1.0%) led the growth in May and has been up for two months. The gain was the largest since January 2023
  • nondurable goods +1.4%. The largest growth rate since November 2023
  • durable goods +0.7% with six of 10 subsectors increasing.
• Public-sector increase by 0.8%
• retail trade was the largest decliner with the fall of -0.9%
  • food and beverage -2.3%
  • health and personal care stores -1.4%
  • Gen. merchandise -1.4%
  • motor vehicle and parts dealers rose 0.8%
• wholesale trade also fell by -0.8%

The USDCAD is trading lower after the US and Canada data (implement cost data was lower ahead of the FOMC rate decision later today. Looking at the hourly chart, the prices below its 100 hour moving average at 1.38348. That is the first will below that moving average since July 12. Staying below would keep the short-term bias focus to more downside probing after the trend move higher. The 200 hour moving out comes in at 1.37996 right around the natural support at 1.3800.

This article was written by Greg Michalowski at www.forexlive.com.