# Canada's Q1 growth outperforms, increases odds for rate hike | Reuters

> Canada's economy expanded 3.1% annualized in the first quarter, above forecasts, which increased odds of a Bank of Canada rate hike. The Canadian dollar strengthened after the data but remained down 0.2% at 1.3630 per U.S. dollar as oil prices fell.

- Date: 2023-05-31 · published 2023-05-31T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/36181-canada-s-q1-growth-outperforms-increases-odds-for-rate-hike-reuters
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Higher rate-hike expectations support the Canadian dollar, which tends to lower the cost of Canadian exports in US dollars only marginally for feed commodities. Oil weakness is the main offsetting pressure on the currency.

## Read by commodity

- WTI: bearish ▼
- USDCAD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-02-27 | [Oil futures slip 1% on worries about more U.S. interest rate hikes \| Reuters](https://feedsoft.ai/events/37486-oil-futures-slip-1-on-worries-about-more-u-s-interest-rate-hikes-reuters.md) | +4.5% | -9.2% |
| WTI | 2021-07-16 | [Oil prices anticipate increase in production \| Reuters](https://feedsoft.ai/events/46225-oil-prices-anticipate-increase-in-production-reuters.md) | +0.6% | -3.6% |
| WTI | 2018-10-23 | [Canadian dollar shakes off plunge in oil as investors brace for BoC rate hike - The Globe and Mail](https://feedsoft.ai/events/62779-canadian-dollar-shakes-off-plunge-in-oil-as-investors-brace-for-boc-rate-hike.md) | -3.2% | -17.6% |
| WTI | 2022-06-23 | [Oil prices slump as investors fear Fed rate hikes will hurt demand \| Reuters](https://feedsoft.ai/events/41110-oil-prices-slump-as-investors-fear-fed-rate-hikes-will-hurt-demand-reuters.md) | +4.5% | -8.0% |
| WTI | 2022-10-26 | [Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening - Bank of Canada](https://feedsoft.ai/events/39349-bank-of-canada-increases-policy-interest-rate-by-50-basis-points-continues.md) | +2.6% | -6.1% |

## Sources

- reuters.com: https://www.reuters.com/markets/canadas-q1-gdp-outperforms-with-31-growth-april-seen-up-02-2023-05-31/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.