The Gross Domestic Product (GDP) is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the Canadian dollar. Here are all the details, and 5 possible outcomes for USD/CAD. Published on Friday at 13:30 GMT. Indicator Background The Canadian GDP is released monthly and provides an excellent indication of the health and direction of the economy. Traders should pay particular attention to this economic indicator and treat it as a market-mover. The January reading came in at -0.1%, the first contraction in the indicator since July 2011. The market prediction for this month is a healthy 0.3% rise. Will the market rebound and climb into positive territory? Sentiments and levels Higher oil prices are great for Canada’s export sector, but they can also hurt the economic recovery in the US, thus dragging down the Canadian economy as well. The loonie recently crossed the important parity level, but is having trouble staying above it. Thus, the overall sentiment is neutral on USD/CAD towards this release. Technical levels, from top to bottom: 1.0263, 1.02, 1.0143, 1.0070, 0.99, and 0.9780. 5 Scenarios Within expectations: 0% to 0.6%. In such a scenario, USD/CAD is likely to rise within range, with a small chance of breaking higher. Above expectations: 0.7% to 1.0%: An unexpected higher reading can send the pair well below one support line. Well above expectations: Above 1.1%: An unexpected surge in the reading would push USD/CAD downwards, and a second support level might be broken as a result. Below expectations: -0.4% to -0.1%: A lower GDP figure than predicted could cause the pair to climb and break one level of resistance. Well below expectations: Below -0.4%. In this scenario, USD/CAD will rise and could break a second resistance level. For more on the loonie, see the USD/CAD forecast. Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next EUR/USD Mar. 1 – In Lower Ground After Bernanke’s Blow, Yohay Elam 10 years The Gross Domestic Product (GDP) is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the Canadian dollar. Here are all the details, and 5 possible outcomes for USD/CAD. Published on Friday at 13:30 GMT. Indicator Background The Canadian GDP is released monthly and provides an excellent indication of the health and direction of the economy. Traders should pay particular attention to this economic indicator and treat it as a market-mover. The January reading came in… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
