Canadian 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 Thursday at 12:30 GMT. Indicator Background The Canadian GDP is released monthly, unlike most other developed countries which post GDP on a quarterly basis. The key indicator provides an excellent indication of the health and direction of the economy. Traders should pay close attention to this indicator, as an unexpected reading can quickly affect the movement of USD/CAD. GDP edged down to 0.2% in December, within expectations. The markets are expecting a gain of 0.3% in the January report. Will the indicator match or beat this prediction? Sentiments and levels Janet Yellen sounded ultra-cautious about the Fed’s monetary policy on Tuesday, and risk currencies like the Canadian dollar responded with strong gains. The US dollar remains under pressure, and this trend could continue during the week. So, the overall sentiment is bearish on USD/CAD towards this release. Technical levels, from top to bottom: 1.3353, 1.3174, 1.3064, 1.29 and 1.2780. 5 Scenarios Within expectations: 0.0% 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 1.1%: An unexpected higher reading can send the pair below one support line. Well above expectations: Above 1.1%: An unexpected surge by the indicator would likely push USD/CAD downwards, and a second support level might be broken as a result. Below expectations: -0.5% to -0.1%: A contraction in economic growth reading could cause the pair to climb and break one level of resistance. Well below expectations: Below -0.5%. A very weak reading would likely hurt the loonie and USD/CAD could break above 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 German HICP goes positive +0.1% y/y Yohay Elam 6 years Canadian 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 Thursday at 12:30 GMT. Indicator Background The Canadian GDP is released monthly, unlike most other developed countries which post GDP on a quarterly basis. The key indicator provides an excellent indication of the health and direction of the economy. Traders should pay close attention to this indicator, as… Top 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.
