With the Q1 and March GDP data to capture the start of the lockdown period, there is little informational value for CAD to reflect concern. The 1.37 handle should be sticky while 1.3850 offers resistance for the USD/CAD, according to economists at TD Securities.
You can’t miss the Canadian GDP Preview by Yohay Elam
Key quotes
“Consistent with Statistics Canada’s nowcast, we expect a decline of roughly 10% annualized. The drop should be driven largely by consumer spending (-13.6%), underpinned by a roughly 25% anticipated drop in services spending.”
The CAD, like much of its dollar bloc peers, has latched itself onto two factors: broad USD variation and equities. Indeed, USDCAD’s move below 1.40 has largely been a reflection of the USD leg rather than CAD bullishness.”
“We are looking to the 1.3700/30 area as providing some interim support in the coming weeks. Resistance is located at 1.3850.”
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