Canadian GDP Surprise Not Likely to Change Outlook

(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.


The Canadian dollar gains against the U.S. dollar in the wake of Aug GDP numbers. USD/CAD uptrend still intact.
The Canadian dollar gains against the U.S. dollar in the wake of Aug GDP numbers. USD/CAD uptrend still intact.

Source: FreeStockCharts.com

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Main industrial sectors' contribution to the percent change in gross domestic product, August 2013
Main industrial sectors’ contribution to the percent change in gross domestic product, August 2013

Main industrial sectors' contribution to the percent change in gross domestic product, July 2013
Main industrial sectors’ contribution to the percent change in gross domestic product, July 2013

Source: Statistics Canada (August and July, 2013)

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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

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