The Loonie is retracting this morning after Canada's real gross domestic product grew by 0.5% in the third quarter, following a 0.7% increase in the second quarter. Final domestic demand was unchanged, constrained by falling investment, while export volumes edged up 0.2%. Strength in the mining and petroleum refining industries boosted corporate earnings. Expressed as an annualized rate, real GDP was up 2.0 percent in the third quarter. In comparison, real GDP in the United States grew by 3.5 percent.
Leaders of the US, Mexico, and Canada took a step on Friday toward easing commercial tensions in the region, signing a new pact that overhauls and updates their quarter-century-old free-trade zone, and it came a day before Trump is scheduled to hold a high-stakes dinner in Argentina, with Chinese President Xi Jinping on Saturday night.
Crude is trading 1 percent lower this morning, but still above 50 dollars. It is influencing the USD/CAD to trade slightly higher at around the 1.3300 handle.