Canada’s GDP data was the best back to back gains since the end of 2017, oil was the main driver of the upswing, this adds more credence to the Bank of Canada’s previous comments of a better economic second half of 2019. In fact, today’s the Boc Business Outlook survey points to a slight improvement in business sentiment after moderation previously, with continuing strength in investment and hiring intentions. The overall business outlook indicator thus recovered after falling into negative territory for the first time since 2016 previously, rising from a revised minus 0.65 back into the plus column at 0.19. Businesses expect sales growth to increase in the next 12 months, boosted by stronger domestic as well as improved foreign demand. These expectations are underpinned by an improvement in indicators of future sales, such as better order books and more sales inquiries compared with a year ago. Sales optimism is concentrated in Central Canada and includes positive expectations for the housing market.
Meanwhile expect narrow ranges on the currencies for the remainder of the day.
Currently Close Range
USDCAD 1.3088 1.3095 1.3060-1.3102
EURCAD 1.4885 1.4887 1.4872-1.4920
GBPCAD 1.6622 1.6600 1.6580-1.6658
CA: Monthly Gross Domestic Prod April 0.5% 0.3%
Y/Y 1.4% 1.5%
BoC Business Outlook Survey Q2
Industrial Product Prices Index May 0.8% 0.1%
Y/Y 1.8% 0.6%
US: Personal Income May M/M 0.5% 0.5%
Consumer Spending May M/M 0.6% 0.4%
Consumer Sentiment June 97.9 98.2