Canadian Dollar fails to spark interest after GDP print

• The Canadian Dollar is on the high side for Friday, but flows remain thin.
• Canada printed a better-than-expected GDP result in Q2.
• Next week brings another BoC rate call, 25 bps cut expected.

The Canadian Dollar (CAD) recovered some slight ground against most of its major currency peers on Friday, but trading remains thin as market flows struggle to find interest in the CAD. The Canadian Dollar also failed to spark a bid against the Greenback, waffling into the low side against the USD after an upside beat in Canadian Gross Domestic Product (GDP) growth failed to generate a meaningful bullish bid.

Canada is set to go dark for a long weekend, leaving next week's opening volleys an even thinner affair than usual. A looming rate cut from the Bank of Canada (BoC) will also keep CAD flows trimmed thinner than usual.

Daily digest market movers

• Canadian GDP in the second quarter ticked up to 0.5% from the previous 0.4%.
• Annualized Canadian Q2 GDP also jumped to 2.1% from the previous 1.8%, thumping the expected downshift to 1.6%.
• Despite the overall upbeat swing in the print, MoM GDP stumbled, printing at a flat 0.0% compared to the previous 0.2% and missing the median market forecast of 0.1%.
• Global markets are gearing up for a quiet open next week with both CAD and USD markets shuttered for the long weekend.
• The BoC is broadly expected to deliver yet another rate trim of 25 bps next Wednesday, bringing the main reference rate down to 4.25%.

Canadian Dollar price forecast

The Canadian Dollar (CAD) screeched to a halt against the Greenback on Friday, pulling into the day's midrange and sticking close to the day's opening bids. A bullish bid beneath the CAD is slowly rolling over from a brief pause into a possible pullback, leaving USD/CAD poised for a rebound back toward the 200-day Exponential Moving Average (EMA).

USD/CAD daily chart