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Growth data from Canada will be released on Thursday. Analysts at CIBC expect the headline not to accelerate much, but they consider that some of the details will look better.

Key Quotes:  

“First quarter figures (…) won’t show much in terms of an acceleration in Canadian GDP. However, last quarter the devil was in both the headline and the detail. This time around those details should look better. Domestic demand, while not strong, should have returned to growth following two quarterly declines, helped by housing (outside of Vancouver) and business investment (outside of oil).”

“The GDP deflator, which fell more than had been expected in Q4, could make up for that lost ground and then some as oil prices roared higher. Finally, a strong monthly number for March should set us up for a good Q2. Stronger growth signals over the summer could lead to a near-term rally in the C$, before it weakens again next year.”