GDP of Canada Preview: What’s expected of USD/CAD

FXStreet (Edinburgh) - Canada will publish its GDP figures for the third quarter later today in the NA session. Market consensus sees the domestic economy to have expanded at an annual pace of 2.4% during the July-September period, reverting the previous quarter’s 0.5% contraction.

Market participants will closely follow today’s releases in light of the persistent decline in crude oil prices and their impact on the domestic economic conditions, as highlighted many times by the BoC.

In the FX space, USD/CAD keeps trading in the vicinity of the key barrier at 1.3300 today, losing ground for the second session in a row in response to a softer tone surrounding the greenback. A negative print would surely accelerate the selling pressure around CAD, and could lift spot to the interim resistance around 1.3400 the figure (yesterday’s tops) opening the door at the same for a test of YTD peaks beyond 1.3450. On the opposite direction, a positive surprise would intensify the bid tone around CAD and could prompt the pair to break below 1.3300, exposing 1.3250 as the next downward stop.