Created
: 2025.08.29
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Canadian economy contracts by 1.6% in the second quarter
World FX news
Breaking news
Canadian economy contracts by 1.6% in the second quarter
New
2025.08.29 22:27
2025.08.29 22:27
2025.08.29 22:27
- Canada's real GDP contracted more than expected in Q2.
- USD/CAD trades in positive territory above 1.3770 after this data.
Canada's real Gross Domestic Product (GDP) declined by 0.4% on a quarterly basis in the second quarter, Statistics Canada reported on Friday. This print followed the 0.5% growth recorded in the first quarter.
At an annual rate, Canada's economy contracted by 1.6%, compared to the market expectation for a decline of 0.6%.
Market reaction
USD/CAD continues to stretch higher after this data and was last seen gaining 0.2% on the day at 1.3775.
GDP FAQs
A country's Gross Domestic Product (GDP) measures the rate of growth of its economy over a given period of time, usually a quarter. The most reliable figures are those that compare GDP to the previous quarter e.g Q2 of 2023 vs Q1 of 2023, or to the same period in the previous year, e.g Q2 of 2023 vs Q2 of 2022. Annualized quarterly GDP figures extrapolate the growth rate of the quarter as if it were constant for the rest of the year. These can be misleading, however, if temporary shocks impact growth in one quarter but are unlikely to last all year - such as happened in the first quarter of 2020 at the outbreak of the covid pandemic, when growth plummeted.
A higher GDP result is generally positive for a nation's currency as it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attracting higher foreign investment. By the same token, when GDP falls it is usually negative for the currency. When an economy grows people tend to spend more, which leads to inflation. The country's central bank then has to put up interest rates to combat the inflation with the side effect of attracting more capital inflows from global investors, thus helping the local currency appreciate.
When an economy grows and GDP is rising, people tend to spend more which leads to inflation. The country's central bank then has to put up interest rates to combat the inflation. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold versus placing the money in a cash deposit account. Therefore, a higher GDP growth rate is usually a bearish factor for Gold price.
Last updated
: 2025.08.29
Related articles
Canadian Dollar falls once again as Loonie support withers
2025.09.11 03:11Forex Today: Focus shifts to US CPI, while the ECB is seen "on hold"
2025.09.11 03:10WTI rises as geopolitical tensions overshadow bearish US EIA data
2025.09.11 03:05Dow Jones Industrial Average misses out on post-PPI rally, declines over 200 points
2025.09.11 01:30Swiss Franc gains after weak US PPI; SNB's Schlegel signals cautious stance
2025.09.11 00:35United States FX Today: The US Dollar hinges on CPI inflation data
2025.09.11 00:08
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Canadian Dollar falls once again as Loonie support withers
The Canadian Dollar eased further on Wednesday, declining around one-sixth of one percent and putting the USD/CAD pair on track to challenge its key 200-day Exponential Moving Average (EMA).
New
2025.09.11 03:11Forex Today: Focus shifts to US CPI, while the ECB is seen "on hold"
Mounting speculation of further rate cuts by the Federal Reserve next week weighed down the US Dollar (USD) on Wednesday, a view reinforced after US Producer Prices rose less than expected in August.
New
2025.09.11 03:10WTI rises as geopolitical tensions overshadow bearish US EIA data
West Texas Intermediate (WTI) Crude Oil surges on Wednesday, extending its winning streak for a third straight day as geopolitical tensions outweighed bearish US inventory data.
New
2025.09.11 03:05Gold climbs to $3,646 as soft US PPI and geopolitical risks lift safe-haven demand
Gold price surges on Wednesday, up by over 0.60%, folllowing US inflation data, which increased speculation that the Federal Reserve (Fed) will resume its easing cycle at the upcoming September meeting. At the time of writing, XAU/USD trades at $3,646, shy of the record high of $3,674.
New
2025.09.11 02:01Dow Jones Industrial Average misses out on post-PPI rally, declines over 200 points
The Dow Jones Industrial Average (DJIA) missed the mark on Wednesday, shedding over 200 points from the open. US Producer Price Index (PPI) inflation came in below expectations, bolstering bets of interest rate cuts from the Federal Reserve (Fed) next week.
New
2025.09.11 01:30Swiss Franc gains after weak US PPI; SNB's Schlegel signals cautious stance
The Swiss Franc (CHF) strengthens modestly against the US Dollar (USD) on Wednesday, with USD/CHF trimming intraday gains as the Greenback softens after softer-than-expected US Producer Price Index (PPI) figures further cemented market expectations that the Federal Reserve (Fed) will cut interest ra
New
2025.09.11 00:35United States FX Today: The US Dollar hinges on CPI inflation data
The US Dollar (USD) is moving cautiously on Wednesday, down slightly on the day according to the US Dollar Index (DXY), as markets hold their breath ahead of the eagerly awaited publication of the August Consumer Price Index (CPI) in the United States (US).
New
2025.09.11 00:08GBP/USD holds near 1.3550 as soft US PPI boosts Fed cut bets
The GBP/USD hoovers around the 1.3550 figure for the third straight day after the latest inflation report in the United States (US) showed that prices paid by producers dipped in August, increasing the chances for an interest rate cut by the Federal Reserve.
New
2025.09.11 00:07Eurozone FX Today: The ECB's pause comes under scrutiny
The Euro (EUR) is holding steady against the US Dollar (USD), trading at 1.1710 on Wednesday. A wait-and-see attitude prevails ahead of the European Central Bank's (ECB) monetary policy meeting, scheduled for Thursday at 12:15 GMT.
New
2025.09.10 23:32EUR/USD steadies above 1.1700 after US PPI miss, attention shifts to ECB
The Euro (EUR) is edging modestly higher against the US Dollar (USD) on Wednesday, as the Greenback lost momentum after weaker-than-expected US Producer Price Index (PPI) figures added to market bets that the Federal Reserve (Fed) will deliver a rate cut next week.
New
2025.09.10 22:38Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
