Improved Canadian economic numbers to cushion CAD's further gains

The release of Canadian national accounts showed a 0.8% (annualized) gain in Canadian real GDP in Q$, slightly better than the zero print expected by markets.

Stripping away net trade, final domestic demand fell by 0.6% in the quarter.

The good news stories were in the forward looking indicators:

Monthly real GDP grew by 0.2% in December, providing a nice hand-off into the first quarter of 2016.

Real exports in January grew 2.5%, and net trade is poised to provide a significant boost to economic growth.  

Canadian growth rate is now above 2% for real GDP in Q1 2016.

Canadian dollar against US dollar hit 1.3370 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3363, gaining 0.35%.

Meanwhile, the commodity-related Canadian dollar remained supported as oil prices rose above $36 a barrel for the first time since January 6.

The loonie was higher against the euro as well, EUR/CAD down by 0.11% to hit 3 months lows at 1.4637.