Canadian GDP Overview
Thursday’s economic docket highlights the release of monthly Canadian GDP growth figures for June, scheduled to be published at 1230 GMT. Consensus estimates point to a modest m/m growth of 0.1%, slower than 0.5% recorded in the previous month.
Statistics Canada will also release the annualized quarterly growth rate, making this event more significant than the ones including only monthly data. A quarterly growth rate of 3% is on the cards for Q2 and any dip below the round number may weigh on the loonie, while a beat will push it higher.
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, in case of a deviation between +0.82 to -0.82, is likely to be around 40-pips during the first 15-minutes and could get extended to 84-86 pips in the following 4-hours.
How could it affect USD/CAD?
Yohay Elam, FXStreet’s own Analyst explains: “1.2880 was the post NAFTA announcement swing low. 1.2820 supported the pair back in late May. 1.2725 was the low point in May.”
“1.2960 supported the pair in early August. 1.3045 provided support to the pair in mid-August. Further up, 1.3100 held the pair down before the fall in late August,” he adds further.
Key Notes
“¢ Canadian GDP Preview: Rebound growth numbers eyed by the BOC, NAFTA fate feared
“¢ Canada: Upside GDP surprise to produce a knee-jerk move lower in USDCAD – TDS
“¢ USD/CAD steadily climbs to session tops, Canadian GDP in focus
“¢ How to trade Canada’s quarterly 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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