Canada: GDP growth moderates in July but stays on track for solid quarter – NBC

The National Bank of Canada's Alexandra Ducharme reports that Canadian Gross Domestic Product (GDP) growth slowed in July after three months of strong performance, with both goods and services output remaining flat. The latest GDP report from Statistics Canada suggests that the Canadian economy's recovery may have lost some momentum in the third quarter.

Nevertheless, an estimated 0.2% increase in GDP for August, combined with no growth in September, indicates a 2.0% annualized growth rate for the third quarter. This moderate quarterly advance may alleviate some concerns about the economy's resilience to trade tensions, which have recently escalated. While the Bank of Canada has been patient in the face of the oil shock, it may need to become more proactive in the fourth quarter if the conflict continues.

The prolonged conflict could heighten the risk of rising energy costs leading to broader inflation, particularly if economic activity remains robust. Meanwhile, the AUD/USD exchange rate fell to its lowest level in nine weeks, while USD/JPY consolidated around 157.50 in the Asian session. Political tensions in Japan and the United States have contributed to this currency movement, with the Federal Reserve and the Bank of Japan both raising interest rates by 25 basis points.

Meanwhile, the gold market has stabilized slightly after reaching recent lows near $4,100 per troy ounce, buoyed by a stronger US dollar and higher interest rates. Meanwhile, cryptocurrencies are showing a neutral-to-bullish sentiment, with Bitcoin nearing a breakout above $84,000, and Ethereum and Ripple continuing their upward trend.