When is the monthly Canadian GDP report and how could it affect USD/CAD?

Canadian monthly GDP overview

Monday's economic docket highlights the release of monthly Canadian GDP growth figures for the month of October, scheduled to be published at 13:30 GMT by Statistics Canada. Consensus estimates point to modest growth of 0.1% during the reported month, matching the previous month's reading.

Meanwhile, analysts at TD Securities are looking for Canada’s industry-level GDP is forecast to decline by 0.1% MoM in October owing to a contraction in the goods-producing sector and a large drag from retail and wholesale trade. “Weaker utilities output will provide another headwind, owing to unseasonably warm weather during the month. Services should fare slightly better, although a sharp pullback in both retail and wholesale trade volumes will weigh. Professional services, a significant driver of recent strength in the services sector, saw a large (+2.1%) increase in hours worked for October which should provide a tailwind.”

How could it affect USD/CAD?

Ahead of the key release, Anil Panchal – Reporter at FXStreet – outlined important technical levels to trade the USD/CAD major: "Buyers look for entry beyond the 61.8% Fibonacci retracement level of 1.3160 while targeting the 50-Day Simple Moving Average (DMA) level of 1.3193. Though, 1.3200 round-figure, 23.6% Fibonacci retracement, near 1.3300 and monthly top close to 1.3323 will act as consecutive challenges for the bulls past-1.3193."

"On the downside, pair’s declines below the resistance-turned-support line, at 1.3133 now, can recall the recent low surrounding 1.3100. If at all buyers fail to enter around 1.3100, 1.3040 and 1.3015 could offer few more chances for the pair’s reversal ahead of dragging it to sub-1.3000 area," he added further.

Key Notes

   •    Canada: GDP likely to decline by 0.1% in October – TDS

   •    USD/CAD consolidates in a range, around mid-1.3100s

   •    USD/CAD Technical Analysis: 61.8% Fibonacci questions break of monthly trendline resistance

About monthly 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.