Canada’s monthly GDP negative however future looks good.
While Q2 earnings by the powerhouse companies mostly came in as expected or even better, Wall Street it seems was not completely satisfied. Most companies produced good numbers, but they seem to give some sort of let’s see what the next quarter brings because we are not sure exactly what’s going to happen. The Delta plus variant is now being described as dangerous, the CDC warned the delta variant sweeping across the country is as contagious as chickenpox, has a longer transmission window than the original Covid-19 strain and may make older people sicker. While it may not affect those that are fully vaccinated, the fully vaccinated may become carriers of the variant without even knowing it, thereby leaving those unvaccinated in a vulnerable position.
StatsCan released May’s Monthly GDP but also stated that Preliminary information indicates an approximate 0.7% increase in real GDP for June. Growth in retail trade and accommodation and food services were influenced by the easing of public health measures in many provinces in June. There were also gains in manufacturing and mining, quarrying, and oil and gas extraction, while construction and wholesale trade contracted. This advance estimate points to an approximate 0.6% increase in real GDP in the second quarter of 2021. Because of their preliminary nature, these estimates will be revised on August 31, with the release of the official GDP data for the June reference month and the second quarter of 2021.
The Canadian dollar is a bit weaker, mostly end of week trades, flattening positions, also metals and agricultural futures are down, adding to its weakness.
Expect the CAD to trade in a narrow range and on the weaker side.
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