Canada GDP for February -0.2% versus 0.0% estimate

• Prior month 0.4%
• Canada GDP for February -0.2% versus expectations of 0.0%
• Goods producing industries -0.6% versus +1.1% last month last month
• Services producing industries -0.1% versus +0.1% last month
• 12 of 20 industries declined in the month of February
• Advanced estimate for the month of March 0.1%

Details of the report:

• Following two consecutive monthly increases, the mining, quarrying, and oil and gas extraction sector became the largest detractor from growth, down 2.5% in February, as most subsectors contracted
• Construction (-0.5%) contracted for the first time in four months as most types of construction activities were down in February.. Residential construction -0.9% contributed most to the decline in February with its largest increase since April 2024.
• The real estate and rental and leasing sector contracted 0.4% in February, posting its largest decline since April 2022.
• The manufacturing sector rose 0.6% in February, up for the second month in a row, in large part driven by durable-goods manufacturing industries in February.
• Transportation and warehousing contracted 1.1% in February, following two consecutive monthly gains. Major snowstorms that hit Central and Eastern Canada and storms passing through British Columbia adversely impacted the sector in February.
• The finance and insurance sector increased 0.7% in February, rising for the third consecutive month.

The data is weaker than expectation with the reaction modestly higher for the USDCAD.

Industries and their contributions shows mostly negative contributions

Looking a tthe USDCAD, it is continuing the scraping at low levels with the 100 and 200 hour MAs above and acting as a resistance/bias defining level for traders this morning.