The Loonie is getting hammered this morning after lower than expected output numbers. According to Statistics Canada, real GDP in Canada contracted by 0.1 percent on a monthly basis in December and dragged the annual growth rate for Q4 down to 0.4 percent from 2 percent and missed the market expectation of 1.2 percent by a wide margin.
The USD/CAD was initially trading at 1.3130 after a robust crude oil WTI price action in overnight trading. It was priced in the mid 57s. However, the currency pair slightly increased to the mid 1.3100s, then, a few minutes before the release of the GDP numbers, it rose to 1.3200. At the time of this writing, it is trading at 1.3225, a 0.50 percent increase.
From a technical perspective, as mentioned in the daily commentary yesterday, the USD/CAD continued having a consolidation between 1.3125 and 1.3175, even early today. However, fundamentals confirmed that the technical uptrend is still intact. The USD/CAD popped more than 100 pips within only a few minutes.