It’s not a good day for the CAD Dollar (CAD) as it didn’t start well this morning, marking a bearish candle on the chart against the Japanese Yen (JPY) with a price drop below 83.00.The price decrease results after a major piece of an economic release related to the Gross Domestic Product, which drops sharply from 3.5% to 1.3%. While it beats the expectation of the economist, which was 1.2%.
The Gross Domestic Product of Statistics Canada is a measure of the total value of all goods and services produced in Canada. GDP is seen as a significant measure of Canada’s economic growth and wellbeing. In addition, an upward trend has a positive effect on the CAD, while a negative (or bearish) is seen as a downward trend for the CAD.
Likewise, Statistics Canada’s current account also dropped from-6.74 B to 9.86 B. It is a net stream of foreign transactions, including products, services and interest payments to and from Canada. A current account surplus means that the flow of capital into Canada exceeds the reduction of capital. Low reading is considered negative (or bearish) for CAD.
Furthermore, Statistics Canada’s Retail Sales released monthly data showing all goods sold by retailers based on a sampling of retail stores of different types and sizes with a negative impact of -0.1 percent, anticipating bearish movements for CAD.
Trading CADJPY over a short period of time can be a good decision. However, for traders planning to exchange the pair for a long-term position, the chances are excellent.