When is the Canadian GDP report and how could it affect USD/CAD?
|Canadian GDP overview
Friday's economic docket highlights the release of monthly Canadian GDP growth figures for October, scheduled to be published at 13:30 GMT. Statistics Canada will also release the annualized quarterly growth rate, making this event more significant than the ones including only monthly data. Consensus estimates point to yet another modest expansion of 0.1% during the reported month, while the growth is forecasted to have decelerated sharply to 1.2% annualized rate during the third quarter of 2019 from 3.7% previous.
How could it affect USD/CAD?
As Yohay Elam, FXStreet's own Analyst explains: "The slowdown will not be a total shocker for C$ traders, as Canada releases GDP figures monthly, with July and August's numbers already showing more modest growth. The global economy has been slowing over the summer, and Canada seems to have weathered the storm better than others."
"If quarterly GDP comes out between 1% and 1.4% annualized, the ongoing expansion will likely be cheered by markets and the Canadian dollar may gain ground, sending USD/CAD lower. However, the moves may be limited. The probability is high," Yohay added further. "A sub-1% growth rate may cause worries and weigh on the C$, but the falls may be limited as long as the economy has expanded by over 0.5%. There is always a chance of disappointment."
Key Notes
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About the Canada GDP
The Gross Domestic Product released by Statistics Canada is a measure of the total value of all goods and services produced by Canada. The GDP is considered a broad measure of Canadian economic activity and health. Generally speaking, a rising trend has a positive effect on the CAD, while a falling trend is seen as negative (or bearish) for the CAD.
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