Canadian GDP - Nice Spike but little retracement

This Tuesday afternoon at 1:30pm GMT (8:30am EST) the GDP figure for Canada were released. This data often comes out with other data from the USA such as US GDP and Core PCE, as this is a common release time. Luckily this month it came out on its own which is very fortunate because this release is basically wasted when it comes out with another good report like US GDP and traders don't know which news to trade. Of course the afterspike trade is always there, but in terms of spike trading it is quite risky to do when there is another report which can effect the price besides the main report the trader is focusing on.

Looking back thru the previous releases of this number, it does not deviate much and if it does only by +/- 0.1, however back in March of this year there was a +0.2 and in October 2009 there was a -0.2 deviation. The price of the CAD pair did move very well on these releases. There is also an Annualized Quarterly figure which is released with the main monthly one, this is not as important but it helps if it deviations in the same direction as the main monthly number. Here is the Data:

CANADA SEPT GROSS DOMESTIC PRODUCT M/M: -0.1% V +0.1%E; Q3 GDP ANNUALIZED: 1.0% V 1.5%E- Prior GDP Annualized revised from 2.0% to 2.3%

The news release gave a nice spike trade for about 30-40 pips. There was little retracement in the minutes directly after the news, so no afterspike opportunity. Later in the session some retracements were hit, but other news out of the USA like Chicago PMI and Consumer Confidence were released and the entry of the US traders provided some relief to the US Dollar strengthening trend which had been strong thru-out the european session. Some 2 hours after the release for instance, a bounce off the 61% of the news spike reaction move did provide a bounce from 1.0250 to 1.0280, but it could not maintain momentum. USDCAD has been consolidating between 1.0100 to 1.0250 so todays price action witnessed during the news is an attempt to break-out to the upside. USDCAD did finally test parity some weeks ago, catching up with other pairs like the USDCHF, but now that Risk Aversion is back the USDCAD has held onto some of it's earlier gains. This could have something to do with the announcement that Russia would move some of its reserves into Canadian Dollars and because Canada has tight coupling with the USA.