The Canadian economic system noticed a pointy rebound to start the brand new yr. CAD barely budged following the stronger knowledge. 1.35 ought to supply key help however might face a severe take a look at ought to US knowledge falter within the coming weeks, economists at TD Securities report.
CAD GDP begins 2023 on a good stronger foot than anticipated
“The Canadian economic system roared again to life in January with industry-level GDP exceeding the market consensus with a 0.5% achieve. Particulars had been much more upbeat, with broad-based progress and new projections for GDP to rise by 0.3% in February.”
“The CAD barely modified following the stronger GDP report. That could be muddled by quarter-end rebalancing flows. That mentioned, USD/CAD has put in an honest reversal in slightly brief order from 1.38. So, insofar as this knowledge has altered chances for BoC pricing, the pair could have already been priced in.”
“For now, we expect 1.35 will likely be key help for USD/CAD however observe that the pair nonetheless trades reasonably wealthy. Ought to US knowledge print on the softer facet within the subsequent couple of weeks, that help stage might face a severe take a look at.”
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