• Q3 GDP beat expectations, coming in at 5.4% annualised versus forecasts for 3.0%. 
• The loonie was not responsive, likely due to the ongoing drop in oil prices.  

Canada's Real Gross Domestic Product (GDP) expanded at a monthly rate of 0.1% in September, data published by Statistics Canada showed on Tuesday. This reading was in line with the market expectation for a growth rate of 0.1% MoM.

The annualised pace of GDP growth in Q3 was also released and came in at 5.4%, significantly above expectations for a growth rate of 3.0%. This in part owes to a positive revision to the MoM pace of GDP growth in August to 0.6% from 0.4%. 

Market Reaction

Despite a much stronger than expected GDP number for Q3, the loonie has not seen any reaction to the latest data. Indeed, the drop in crude oil prices continues to accelerate which is capping any potential gains the loonie may have enjoyed in wake of the data.