Canada: GDP expected to print flat – TDS
|The focus of the coming week will center around Friday's GDP report for Q4 (expenditure) and December (industry-level). Rounding out the week are the BoC's Lane on Tuesday and payroll employment (Dec) on Thursday. Strategists at TD Securities share their forecast.
Key quotes
“The market is looking for a 0.3% (saar) increase for Q4, in line with the Bank's projections from the January MPR, though we are slightly more downbeat and look for a flat print. This isn't enough of a surprise to put a rate cut on the table for next week's meeting but given broader sentiment it should put more focus on the April meeting.”
“The Canadian economy likely came to a standstill in the fourth quarter, with our final growth tracking 0.0% (q/q, annualized).
“We will also hear from the BoC's Lane when he gives a speech on digital currencies, but we don't expect any implications for near term policy.”
“Turning to the monthly figures TD looks for industry-level GDP to increase by 0.1% in December on a relatively strong showing from the services sector.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.