The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
Will the CAD rise on a strong GDP growth?
Canadian monthly GDP growth rate is announced on Tuesday at 15:30 MT time.
Instruments to trade: USD/CAD; AUD/CAD; CAD/JPY; GBP/CAD
The contraction of 7.2% that was brought by March was the biggest on record for the Canadian economy. However, March was not the last month during which the virus showed its true extent – it was April. Although some sectors such as the stock market already saw signs of recovery, the real economy was still under pressure. The estimation provided by the Canadian office of national statistics is 11% for April – that’s what the market factored in. That’s why a figure at or above this level will push the CAD, while any underperformance will drag it down.
- If the GDP growth is better than expected, the CAD will rise;
- Otherwise, it will fall.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.