CAD flows: USD opening softer

USD/CAD has gained 20 pips on mildly disappointing Canadian GDP data for September. Although Q3 came in at 1.0% annualised as expected, September only showed a rise of 0.1%, below the 0.3% expected, and this sets a lower base for Q4. USD/CAD initially gained 30 pips to 1.4040 but has reversed half the gain. 2 year CAD yields are down 6bps, and yield spreads support the move up, suggesting we could see gains back above 1.4050. But in a quiet post-Thanksgiving market, with the speculative market already very long USD/CAD, further gains may have to ait until next week.