# Canadian dollar steadies after ‘limited’ reaction to GDP miss - The Globe and Mail

> The Canadian dollar was little changed against the U.S. dollar on August 31, 2021, recovering earlier losses. Statistics Canada reported that the economy unexpectedly contracted 1.1% in the second quarter, versus analyst expectations of 2.5% growth. Oil prices had fallen earlier in the session.

- Date: 2021-08-31 · published 2021-08-31T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/45789-canadian-dollar-steadies-after-limited-reaction-to-gdp-miss-the-globe-and-mail
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

A weaker oil price and a softer Canadian economy weigh on the loonie, which raises the cost of Canadian-origin imports for buyers. The currency move is small and has little direct effect on feed grain prices.

## Read by commodity

- WTI: bearish ▼
- USDCAD: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-02-01 | [Canadian dollar posts 2½-month high as stocks rally after Fed rate hike - The Globe and Mail](https://feedsoft.ai/events/37580-canadian-dollar-posts-21-2-month-high-as-stocks-rally-after-fed-rate-hike-the.md) | -2.2% | -1.7% |
| WTI | 2022-10-31 | [Canadian dollar slips to six-day low as oil prices fall - The Globe and Mail](https://feedsoft.ai/events/39347-canadian-dollar-slips-to-six-day-low-as-oil-prices-fall-the-globe-and-mail.md) | +5.4% | -12.2% |
| WTI | 2022-11-17 | [Canadian dollar holds steady vs U.S. counterpart, beats rest of G10 - The Globe and Mail](https://feedsoft.ai/events/38911-canadian-dollar-holds-steady-vs-u-s-counterpart-beats-rest-of-g10-the-globe-and.md) | -9.0% | -11.3% |
| WTI | 2022-11-16 | [Canadian dollar retreats from 100-day moving average as inflation holds steady - The Globe and Mail](https://feedsoft.ai/events/38907-canadian-dollar-retreats-from-100-day-moving-average-as-inflation-holds-steady.md) | -6.9% | -11.2% |
| WTI | 2024-01-31 | [Canadian dollar weakens as Fed rate signal offsets GDP gain - The Globe and Mail](https://feedsoft.ai/events/32333-canadian-dollar-weakens-as-fed-rate-signal-offsets-gdp-gain-the-globe-and-mail.md) | -6.0% | +1.3% |

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/markets/inside-the-market/market-news/article-canadian-dollar-retreats-after-surprise-gdp-contraction-in-second/

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