Canadian Nov. GDP will be in focus on Friday – TDS
|Analysts at TD Securities (TDS) offered a brief preview on Thursday's release of Canadian monthly GDP print for November and also the near-term outlook for the USD/CAD pair.
Key Quotes:
“While FX investors continue to grapple with virus contagion concerns, today's Canadian GDP report is our main data focus. We look for a flat print on industry-level GDP for November, in line with the market consensus, due to weakness across goods and services. Transitory factors will have offsetting impacts, reflecting a rebound in auto production, after the UAW disrupted supply chains the prior month, alongside a headwind from the impact of cold weather and the CN strikes. Unchanged GDP would leave Q4 tracking near the BoC's latest projections (0.3%).”
“We continue to favour topside in USDCAD. Today's clear break above the 200-dma (1.3228) has brought the pair up to trendline resistance at 1.3240/45. This could usher in renewed buying interest if we manage to close this week above that mark. With support to be found in the 1.3150/80 zone, the next major objective higher comes in around the November/December highs near 1.3325. We note, however, spot is inching toward "overbought" conditions on the daily RSI. This could begin to constrain the pace of gains in USDCAD if bullish catalysts diminish.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.