The Bank of England’s Monetary Policy Summary will be announced on Thursday at 14:00 MT time.
CAD: is Canadian GDP puzzled?
Canadian monthly GDP will be out at 15:30 MT time on Friday.
Instruments to trade: USD/CAD, NZD/CAD, CAD/JPY, EUR/CAD
Monthly GDP is the primary economic indicator for any country. For Canada, it has been declining since March 2018. Only the November figure broke the trend and rose to the level of 0.1%. That surprised the market, which believed there would be nothing better than 0% at that time. However, many say that the reason why the GDP rate gained was unusually cold weather in November, which boosted the utilities sector and pushed the GDP. Strategically, the fundamentals in the last quarter of 2020 are more depressive than promising, especially in view of the rail strikes and pipeline ruptures that have kept happening in Canada up until now. On the other side, the US President is pressing on the USMCA alliance, which should bolster the Canadian economy in the long-term. Therefore, it will be safe to expect a very modest monthly GDP growth in December.
- If the monthly GDP exceeds the market forecast, the CAD will gain value;
- If the monthly GDP undershoots the forecast, the CAD will decline.
The US Non-farm payrolls, also known as NFP, will be published on April 3, at 15:30 MT time.
The United States will publish ISM manufacturing PMI on April 1, at 17:00 MT time.
Canada will publish the monthly GDP growth on Tuesday, at 15:30 MT time.