• Canadian economy grew at a softer pace than expected in August.
• USD/CAD edges higher in the early American session.

Canada's Real Gross Domestic Product (GDP) expanded at a monthly rate of 0.4% in August, the data published by Statistics Canada showed on Friday. This reading came in weaker than the market expectation for a growth of 0.7%.

"Preliminary information indicates that real GDP was essentially unchanged in September," the publication further read. "This advance estimate points to an approximate 0.5% increase in real GDP in the third quarter of 2021."

Market reaction

The USD/CAD pair gained traction after this report and was last seen rising 0.15% on the day at 1.2360.