Canada’s March GDP for March came out as expected showing growth of 0.3%, much better than the precious drop of 0.1%. Meanwhile, on a quarterly basis, first quarter results show an increase higher than expected at 1%, versus a prior 0.8%. This is an indication the Canadian economy speeded up at its fastest pace in a year during this first quarter of 2011.
However, Canada’s current account deficit (on a seasonally adjusted basis) with the rest of the world declined for the second consecutive quarter to reach $8.92 billion in Q1 compared to an expected decline of $8.80 billion. This is a slightly smaller decline though from last quarter’s revised $10.28 billion.
Statistics Canada reported that the $1.4 billion decline in the current account deficit was largely attributable to strong export volumes of energy products. Canada is a producer and exporter of oil.
USDCAD rose 0.9752 to as high as 0.9774 within 20 minutes of the news at 1230GMT.