When is Canadian GDP and how could affect USD/CAD?

Statistics Canada will publish its GDP figures for the fourth quarter 2016 and December’s results at 1330h GMT.

Market consensus expects the economy to have expanded at an annualized 2.0% during the last three months of 2016 and 0.3% on a monthly basis during December.

In view of strategists at TD Securities, “Q4 GDP is expected to come in above consensus while monthly industry-level growth could land below market expectations. We think the market is more likely to focus on monthly print given that Q4 growth is already expected to exceed Bank of Canada estimates and the Bank has also downplayed the report amid ongoing competitiveness challenges”.

Implications for USD/CAD

CAD remains on the defensive so far this week, challenging lows near the 1.3400 handle vs. its American neighbour, levels last traded early in January. A positive reading today should add some buying interest to the Canadian Dollar, although the recent cautious stance from the BoC should help dilute any attempt of recovery, staying to the mercy of USD-dynamics. In the meantime, further upside in USD/CAD should find initial resistance at 1.3575, the 50% retracement of the 2016 drop ahead of December’s top just above the 1.3600 limestone (December 28).

About Canadian GDP

The Gross Domestic Product released by the Statistics Canada is a measure of the total value of all goods and services produced by Canada. The GDP is considered as a broad measure of Canadian economic activity and health. A rising trend has a positive effect on the CAD, while a falling trend is seen as negative (or bearish) for the CAD.