The USD/CAD currency pair dropped significantly, as the Canadian monthly GDP tripled forecasts in May. Right after the data release, the Loonie appreciated against the US Dollar by 47 base points, or 0.38%, to 1.2481. Moreover, the strength of the commodity-sensitive Canadian Dollar was additionally fuelled by higher oil prices. Statistics Canada reported on Friday that the country’s real gross domestic product rose for the seventh month in succession, marking a 0.6% increase in May. The report showed expansion in 14 out of 20 sectors, with the strongest gains in goods-producing industries, which rose 1.6% for the month, supported by gas and oil extraction, mining and quarrying.
