Strong GDP Growth Rate Strengthened Canadian Dollar

Yesterday was the day of goodness for the Canadian Dollar since morning because after the release of GDP growth rate report in the market a drastic change is seen in the Canadian Dollar index chart that is it seems to be rises up after the past day lows of the Forex online trading market.

GDP growth rate rises up to six percent that is beyond the expectations of annualized rate. As we have noticed that it grows up to 0.6 percent in the month of March as compared to the Feb. growth rate that is of only 0.3 percent.

It was anticipated in the market that the Canadian Dollar is expected to rise up until the meet of BOC members that will be held today. The market is expecting that the BOC will be the first G7 Central bank that begin the tightening in the market.

Fed will hope to "maintain its accommodate policies of exit" as mentioned specifically by the Fed Chairman Bernanke in mid term of this year. But it is also correct that timing of exit may differ in the countries as their economic conditions may vary among different countries.

The major question that is still in the mind of the EU members are "how the euro zone debt crisis ends will affect the economy of the country that will persist the fact that how to respond" is specified by the Philly Fed Plosser. Since some members was expecting that the economic debt crisis will embed uncertainty in the outlook of the economy.

In May month there was a sudden growth seen in the PMI of Japan and it reaches to 54.7 percent. The industrial production in Japan leads to grow up at the rate of 1.3 percent mom where as it was 25.9 percent yoy in April month.

There was a drop also shown in terms of economic confidence and services confidence that is of 98.4 in the month of may and services dropped up to level three. While there was a drop down also noticed in the euro zone M3 money that is 0.1 percent yoy in the month of may.

Since October 2009 it is seen that the RBA has taken meeting up to 6 times and still it is seen that the RBA will keep their rate unchanged from 4.5 percent.

There are some factors hat suggests the hold of Central bank that is it includes recent development in macro-economic developments along with euro zone economic debt crisis and its impacts on the Global world economy outlook that ultimately heightens the risk aversion and also a mild impact on the moderation of the economic data of Australia.

he European debt crisis embedded uncertainty in the outlook of the Global economy- said by the Chicago Fed Evans and after this if the Fed government decides to keep the price rate low for some extent then it will not make any wonder among the minsters.

If we look at the commodity prices of japan then it seems that it was doing little bit good recovery as compared to other nations that its PMI growth rate is 54.7 percent in the month of May. While the increase is shown in the Industrial production and rises to 1.3 percent mom in May.

The relative strength of the currency pair of AUD and CAD will be determined after the decision of the BOC and RBA minutes that seems to crucial for this week. As we have seen that there is a recovery seen in the currency pair of AUD/CAD after a low of 0.8645.

There will be a further recovery expected in the currency pair of EUR/JPY which was at the tight range today for four hours but it gets recovered around 38.2 percent. It was anticipated in the market that further recovery seems as a correction in the huge down trend in the euro currency pairs.

At last it was only said that the further extent is seen in the Canadian Dollar after the stronger economic data release and now how long will it go to is still a doubtful case fo the investors. BOC minutes will decide in the today's meeting about the "pause" will continue or they will change the interest rate now for the June hike.