In the Asian session on Thursday (June 1), USD/CAD fell to 1.3567, a drop of 0.07%. A preliminary estimate of Canada’s April GDP growth of 0.2% from the previous month suggested that the economy was more likely to expand again in the second quarter, raising questions about expectations for slower growth this year.
The latest from the Bank of Canada:
Previously, the agency had forecast a modest contraction in GDP in the second quarter. TD Securities added that the unexpectedly strong Q1 GDP won‘t be a game-changer by itself, but with signs of momentum gaining momentum in the second quarter and upside risks to the Bank of Canada’s inflation forecast after the last CPI report, rates are on hold in 2023 Unchanging is starting to look more challenging.
