(This is an excerpt from an article I originally published on Seeking Alpha on November 4, 2013. Click here to read the entire piece.)
Last week, Statistics Canada reported year-over-year GDP growth of 2.0% for August, 2013 which beat analyst expectations of 1.7%. This growth translated into a 0.3% month-over-month increase. July delivered 0.6% growth and June a 0.5% month-over-month decline. The upside surprise was enough to send the Canadian dollar soaring against all major currencies. In particular, USD/CAD (FXC) dipped sharply…and created the buying opportunity I was looking for when I wrote about the Bank of Canada’s downgrade of the economy.
Source: FreeStockCharts.com
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Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on November 4, 2013. Click here to read the entire piece.)
Full disclosure: long USD/CAD