Canada: Real GDP expands by 0.1% in December vs. 0.3% expected

• Economic activity in Canada grew at a softer pace than expected in December.
• USD/CAD posts modest daily gains above 1.2650 after the data.

Canada's Real Gross Domestic Product (GDP) expanded by 0.1% in December, the data published by Statistics Canada showed on Tuesday. This reading came in weaker than the market expectation of 0.3%. On a positive note, November's reading got revised up to 0.8% from 0.7%.

"In 2020, real GDP shrank 5.4%, the steepest annual decline since quarterly data were first recorded in 1961," the publication further read. "Final domestic demand rose 0.9% in the fourth quarter but was down 4.5% for 2020 overall."

Market reaction

The USD/CAD pair edged slightly higher after this report and was last seen gaining 0.2% on the day at 1.2670.