The first look at Q4 GDP is due at the bottom of the hour
Canadian headlines are dominated by talk of tariffs and a trade war today. There are hopes that Canadian producers could be exempted but that’s based more on hope than any evidence yet.
USD/CAD is technically vulnerable with a major resistance level looming. About a half-cent above spot is the triple top of 1.2920 that was formed late last year. A break would first target the Feb 2017 low 1.2962 followed by 1.3000 and then it could be a quick move higher from there — especially if there’s a reason to buy.
It’s probably a stretch for GDP to move the market enough to break that level but it’s possible. This is the first look at the fourth quarter, which is forecast to show 2.0% annualized growth, up from 1.7% in Q3. It will also show the first look at 2017 calendar-year growth, which is expected to lead the G7.