US GDP Matches Estimate | BoC Holds Rates, Reiterates Status Quo Stance
Published May 30, 2019
The US first quarter GDP grew by 3.1 percent, slightly lower than the initial 3.2% projection from the Bureau of Economic Analysis, the Commerce Department reported Thursday. The initial market reaction to the reading was relatively muted as the US Dollar Index was trading flat on the day above 98 levels.
The Bank of Canada kept its benchmark interest rate steady at 1.75 percent on Wednesday in a widely anticipated move that reflects a clouding global economic outlook. The Canadian dollar hit a 5 month high after the announcement, however, USDCAD retraced some of its losses and was trading at 1.3490 levels this morning amid surging oil prices.
The US jobs market continued to point to ongoing tightness as initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 215,000 for the week ended May 25, the Labor Department said on Thursday.
People’s Daily, the newspaper owned by China’s ruling Communist Party, said that the country is considering limiting exports of rare earths as the trade war with the US escalates. China dominates the global supply of rare earth minerals and accounted for almost 80% of exports to the US last year.