- Canadian economy contracted at a softer pace than expected in April.
- USD/CAD remains in the negative territory below 1.2400.
Canada's Real Gross Domestic Product (GDP) contracted at a monthly rate of 0.3% in April, the data published by Statistics Canada showed on Wednesday. This reading came in slightly better than the market expectation for a decrease of 0.8%. In March, the Canadian economy grew by 1.3% (revised from 1.1%.
"Overall, 12 of 20 industrial sectors were down as gains in goods-producing industries (+0.5%) were more than offset by contractions in services-producing industries (-0.6%)," the publication read. "Preliminary information indicates a decrease in real GDP of approximately 0.3% in May."
Market reaction
The USD/CAD pair dropped to a session low of 1.2366 but didn't have a difficult time staging a rebound. As of writing, the pair was down 0.1% on the day at 1.2388.
