Economic growth in North America has taken some time to gather pace. As a major trading partner with the U.S, Canada will be looking to benefit from recent progress in the recovery, steered by the Federal Reserve. Unlike most other economies, Canadian GDP is measured monthly, with growth disappointing for most of the first quarter will there be a spring revival?
Canadian GDP 12:30 GMT, forecast: 0.1%.
- GDP softened in March dropping to just 0.2% compared to 0.5% in the previous month.
- The Fed has continued with the pace of the tapering program which should spur demand for Canadian exports.
- Inflation is still below the Bank of Canada’s target rate posting a disappointing 1.4% in April.
- Estimates for first quarter growth stand at 1.7% to 1.9%, most of the growth to date was created by the commodities sector which posted positive gains in February.
- A report produced by the Canadian Conference Board puts Canada in the top 5, in terms of economic performance for 2014; scoring high in both economic and employment growth.
- Banc De Binary analysts predict despite positive prospects, the GDP result today will be soft, hence an upward movement in the USD/CAD is expected.