Canadian GDP overview
Friday's economic docket highlights the release of monthly Canadian GDP growth figures for January, 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 0.3% annualized rate during the fourth quarter of 2019, marking a further deceleration from 3.7% growth recorded in the second quarter and 1.3% in July-September quarter.
How could it affect USD/CAD?
The recent bullish momentum to has been exclusively sponsored by the ongoing slump in crude oil prices, led by fears that the outbreak of the deadly coronavirus will further dent the global demand. The commodity-linked currency – the loonie is unlikely to gain any meaningful respite unless the numbers beat market expectations by a big margin.
Given that the pair has rallied over 200 pips since the beginning of this week, a surprisingly stronger reading might prompt some aggressive long-unwinding trade and drag the USD/CAD pair back towards the previous YTD tops resistance, now turned support near the 1.3330 region. Conversely, a disappointing print might provide some additional boost to the ongoing strong upward trajectory. However, slightly overbought conditions might keep a lid near the key 1.3500 psychological mark, at least for the time being.
Key Notes
Canada: GDP to increase below the market consensus – TDS
USD/CAD Analysis: Bullish sentiment
USD/CAD: The loonie’s to depreciate for another few months – NBF
About the Canadian 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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.