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Canada’s industry-level GDP surprised to the upside in May at 0.5% (TD: 0.4%, market: 0.3%), reflecting some unwind of the weather-related drag in April though growth was broadly based across 19 of 20 industries, explains the research team at TD Securities.

Key Quotes

“The strong May print leaves our Q2 GDP tracking at 3.1%, slightly above BoC estimates which raises the risk that the next BoC hike will be in October rather than January.”

FX: Upbeat GDP figures should reinforce consolidation in USDCAD and we remain dip buyers on a move towards 1.29.”