Canada May GDP data should support the CAD
Today’s monthly gauge of Canada’s GDP should reinforce our constructive view on CAD: GDP is likely to have expanded for a fourth consecutive month in May with our economists expecting a 0.3% m/m rise. This reinforces our view that Canada is not part of the policy divergence trade which has supported the USD vs. the AUD, JPY and European currencies. With the Bank of Canada on hold with a mild tightening bias, we expect the CAD to hold up well and remain short EURCAD.
Read the full report: FX Daily
BNP Paribas