Canada GDP: Impact on USDCAD

July ends with data on Canadian economic activity. The Statistics Office of Canada will report the GDP data this Friday at 9:30 p.m. Argentina time (GMT-3).

Stability is projected for the inflation-adjusted Gross Domestic Product for May, which will be reported in the coming hours.

The indicator in April maintained a steep fall from 1.1% in March to -0.3%. These effects correspond to the difficulties of the first quarter due to the economic effects of the pandemic. However, during the second quarter, the recovery began to pick up pace, being reflected in the evolution of some indicators.

In unemployment, for example, from March to date respectively, the indicator has evolved significantly by 7.5%, 8.1%, 8.2% and 7.8%.

The evolution of the GDP in January was 0.7%, 0.4% in February, 1.1% in March, 1.1% in April and -0.3% in May. The change produced by inflation in the exchange of goods and services of the entire Canadian economy has evolved positively, despite the effects of the pandemic at the beginning of this year and, considering the variation and volatility of oil prices, a product of Exports from the country.

In said period, monthly adjusted inflation ranged between 0.3% and 0.5%. The inflation result obtained in July was 0.3% for the month of June.

Therefore, considering that the general inflation rate has already exceeded 3% and the economic recovery is in consolidation, it could be expected that this Friday’s data will be positive.

There is greater confidence from the Bank of Canada in the strengthening of the Canadian economic outlook and they expect GDP to reach 6% by the 2021 cycle.

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