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31 Mar 2015
USD/CAD might drive higher post Canada’s Jan GDP release – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities, view that risk for Canada’s GDP release lie to the downside, and USD/CAD might move higher post the data outcome.
Key Quotes
“The key event risk of the day is the January industry level real GDP, where we forecast a below consensus decline of –0.3% m/mm (market: -0.2%). We think there is a risk that the decline in output could be weaker than forecast.”
“While we think a weak GDP print is priced-in, the potential for a downside surprise is nontrivial (which would also suggest that Q1 GDP could contract).”
“Paired with thinner liquidity conditions owing to the upcoming Easter holiday and renewed move lower in WTI, we could still be in for at least a knee-jerk reaction higher in funds following the GDP data.”
Key Quotes
“The key event risk of the day is the January industry level real GDP, where we forecast a below consensus decline of –0.3% m/mm (market: -0.2%). We think there is a risk that the decline in output could be weaker than forecast.”
“While we think a weak GDP print is priced-in, the potential for a downside surprise is nontrivial (which would also suggest that Q1 GDP could contract).”
“Paired with thinner liquidity conditions owing to the upcoming Easter holiday and renewed move lower in WTI, we could still be in for at least a knee-jerk reaction higher in funds following the GDP data.”