Canadian economy grew at 3.1% (annualized in Q2) vs 2.7% exp

There were rumours of a strong reading that we wrote about on Wednesday.

• Fastest growth pace in nearly 3 years
• In June, GDP grew 0.3% vs 0.2% exp
• May GDP revised to 0.5% from 0.4%
• Q1 GDP revised down to 0.9% from 1.2%
• Exports rose 17.8%
• Household spending up 3.8%, led by autos, furniture and clothing
• Business investment 0.%

With the revision, this report isn’t nearly as strong as expected. The Canadian dollar initially rallied (USD/CAD fell) but I like fading the move.