Canada: Real GDP grew by 3% in July as expected

• Canadian economy grew by 3% in July as expected. 
• USD/CAD posts modest daily losses below 1.3400 after the data.

Following a 6.5% expansion in June, the economic activity in Canada, as measured by the real Gross Domestic Product (GDP), grew by 3% in July, the data published by Statistics Canada showed on Wednesday. This reading matched the market expectation.

Market reaction

The USD/CAD pair edged slightly lower after the data and was last seen losing 0.05% on the day at 1.3380.

Additional takeaways from the press release

“The third consecutive monthly gain continued to offset the steepest drops experienced by Canadian economic activity in March and April, however, overall economic activity was still about 6% below February’s pre-pandemic level.”

“Preliminary information indicates an approximate 1% increase in real GDP for August.”

“Overall, the economic recovery continued its course but at a more moderate pace than what was observed for the months of May to July.”