Canadian GDP Overview
Friday’s economic docket highlights the release of monthly Canadian GDP growth figures for the month of April, scheduled to be published at 1230 GMT. Consensus estimates point to a flat m/m reading as against a 0.3% growth recorded in the previous month.
Analyst at TD Securities notes: “This may seem like a shock of cold water ahead of the July BoC, but we would note that the 0.3% print in March provides some insurance for Q2 should we get a weak print in April.”
Deviation impact on USD/CAD
Readers can find FX Street’s proprietary deviation impact map of the event below. As observed the reaction on the pair is likely to be around 40-50 pips during the first 15-minutes and could get extended to 75-85 pips in the following 4-hours in case of a deviation between +1.07 to -1.08.
How could it affect USD/CAD?
Yohay Elam, FXStreet’s own Analyst explains, “1.3240 was a swing low on June 28th. 1.3165 provided support to the pair on its way up on June 18th. It is followed closely by 1.3125 which was the peak in March. Further down, 1.3055 capped the pair in mid-June.”
“1.3350 capped the pair on June 28th. It is followed by 1.3385 which was the swing high on that day. Further above, 1.3420 is an old line,” he further adds.
Key Notes
“¢ USD/CAD: Friday’s key data releases on the cards – TDS
“¢ Canada: GDP to edge lower in April, still BoC to hike in July – TDS
“¢ How to trade Canada’s GDP with USD/CAD
About the Canada GDP
The Gross Domestic Product released by the Statistics Canada is a measure of the total value of all goods and services produced by Canada. The GDP is considered as a broad measure of Canadian economic activity and health. Generally speaking, a rising trend has a positive effect on the CAD, while a falling trend is seen as negative (or bearish) for the CAD.
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