So over the US session on Friday, we had the CAD GDP came in for the Canadian economy. So it was not expected, so the market was expecting minus 0.5 and the data that came in was minus 0.6.
So the big one came at the same time as the advanced GDP in America. This shape the session on Friday night in the US session as the figure came in quite a bit lower than expected at 1.2 percent and the market was looking for 2.6 percent.
So this had an instant impact on the USD and it also put rate rises in doubt as the market would have been looking for more growth in the American economy than what was delivered.
So it could really put the breaks on potential rate rises for the remainder of this year from the US Federal Reserve. We will have to see more data comes out to really get a stronger idea if that going to be the case.
The EU bank stress test came in on Saturday morning and now the picture was a bit brighter than first expected so that’s quite a good news.
And the last thing we want to see is another financial crisis coming into the EU at this point of time. There was the one, one issue. It was an Italian bank which has failed. But there are plans being explained this morning, that they are going to raise capital to solve the issue that they have.
So, on the back of the GDP the USD dropped to two-month low with risk currencies rallying of that release. So US stocks were a bit ho-hum on with the data that came out. So the data was 0.313 percent the S&P increased 0.16 percent. The Aussie dollar have arrived to 75.7575 it was quite a very strong day.
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All times are in AEST.
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