The Canadian Dollar gained more than 300 pips on its U.S counterpart in the last three days. The Loonie rose almost 1% on Wednesday, and USD/CAD finished under 1.30 again. CAD got stronger despite the deflationary price data that was published on Tuesday. Today we will have the Canadian GDP print coming out in the afternoon, and that might cause some volatility in the related pairs. Analysts expect growth of 0.3%, which would be 0.1% higher than last month’s data.
Our assessment: The correction in the Canadian Dollar is unlikely to be over, and we could see a strong rebound in the pair, especially if today’s GDP data comes in weaker than expected.
