Research Team at Westpac, suggests that a strong Q3 rebound is on the cards for Canada if monthly GDP, IVEY, jobs and trade data are anything to go by.
“Firmer activity likely extends well into 2017 as fiscal stimulus ramps up and even as the slump in energy lingers firmer oil prices suggest at least a less bleak outlook. Altogether domestic plusses outweigh the negatives. But, the BoC remains cautious and their easing bias negates the positives. Hence USD/CAD has held above 1.30 despite 3 ½ month highs in oil prices. BoC should eventually see the brighter picture. Fade strength in USD/CAD toward 1.33. The technical and model signals are more upbeat CAD too. Friday’s close below 1.3140 has flipped technical bias to CAD rebounding, but within the context of further range trading.”