FXStreet notes that a very weak report is well-anticipated at this point and economists at TD Securities expect the Canadian GDP to contract by 12% MoM versus the market consensus of a 12.2% contraction. USD/CAD might be more sensitive to an upside surprise.
“Industry-level GDP will confirm another historic contraction in April with output expected to fall 12% MoM for an 18% drop from February, slightly worse than flash estimates from Statistics Canada. We expect a fairly even performance across goods and services and there are few industries where we see any scope for higher output.”
“We think the CAD might demonstrate more sensitivity on an upside surprise. Overall however, we think USD/CAD has put in good work to form a base around 1.35. Meanwhile, the 1.3680/3730 air pocket will be a crucial pivot zone that will pave the way to further topside if it does not hold near-term. Our bias in the coming weeks leans that way.”
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.