Release Explanation: This report measures the monetary value of all goods and services produced within a Country’s borders in a specific time period. GDP is calculated on an annual basis, is the broadest measure of activity, and the primary gauge of each economy’s overall health. It includes all Company and Personal consumption, government outlays, investments, and exports fewer imports, that occur within a defined territory.
”A strong annual GDP outlook will lead to strong investment in an economy especially from overseas. A weak annual GDP outlook will usually lead to a slowdown in the economic business cycle. The yearly forecast is as important as the actual release number. As a reflection of the value of what an economy is producing, GDP will invariably have a ripple effect across all other economic releases, over a period of time,” TheLFB-Forex.com Trade Team said.
TheLFB-Forex.com Trade Desk Thoughts: Real gross domestic product edged down 0.1% in February. Economic activity has declined by 2.4% since October 2008.
A 19% rise in motor vehicle and associated parts manufacturing in February was not enough to outweigh declines in construction and in mining activities (excluding oil and gas). Wholesale and retail trade and several major groups of the manufacturing sector also declined. Conversely, oil and gas extraction and some tourism-related industries advanced. The finance and insurance sector as well as the public sector were unchanged.
Forex Technical Reaction: The cad (Usd/Cad) fell some 170 pips during the overnight session, but could not break below TheLFB S2 (1.1850). Since the news release, the cad has risen 25 pips.