Canada’s GDP came out slightly below expectations, weighing on the loonie alongside NAFTA uncertainty. What’s next?
Here is their view, courtesy of eFXdata:
CIBC Research discusses its reaction to today’s Canada Q2 GDP print.
“Canada’s second quarter was brighter, the first half not so much. The 2.9% pace for Q2 was within a tick of what we expected, and that was made up with a one tick upward revision to Q1. But with that Q1 pace still only 1.4%, first half growth was only a hair above what the Bank of Canada sees as the country’s non-inflationary speed limit…
The in-line GDP figures, and flat June, are enough reason for the Bank of Canada to wait until October to hike again, particularly if we don’t get a clear and favourable outcome to NAFTA and the tariffs on steel/aluminum are left in place,” CIBC argues.
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