• Canadian economy grew at a stronger pace than expected in January.
• USD/CAD clings to small daily gains slightly below 1.3550.

The real Gross Domestic Product (GDP) of Canada grew by 0.5% on a monthly basis in January, Statistics Canada reported on Friday. This reading followed December's contraction of 0.1% and came in better than the market expectation for an expansion of 0.3%. 

"Advance information indicates that real GDP increased 0.3% in February," Statistics Canada further noted in its press release. "Increases in the mining, quarrying, and oil and gas extraction, manufacturing, and finance and insurance sectors were slightly offset by decreases in construction, wholesale trade, and accommodation and food services."

Market reaction

USD/CAD retreated from daily highs after this data and was last seen rising 0.17% on the day at 1.3543.