- Economic: The Canadian economy is now well into what is expected to be its most severe economic recession since the early 1980s, and all indications are for a rather sizeable drop in economic activity in November. In fact, with retail sales, manufacturing sector shipments, wholesale trade and housing sector activity all declining in dramatic fashion during the month, and export demand for Canadian products falling by the day, it appears that all segments of the Canadian economy are being whiplashed. For November, analysts expect GDP to fall by a massive 0.6% M/M, which will be the first back-to-back monthly drop in GDP since the first quarter. The decline is expected to be broadly based, with the output from both the goods and services producing sector falling on the month. Looking ahead, Canadian economic activity is expected to remain very weak.
- Currency: While tomorrow’s Canadian GDP report is expected to be pretty terrible, it may be swamped by the equally atrocious US Q4 GDP number, out at the same time. Some short-term upward pressure on USD/CAD is expected, but since the reaction to the weak Canadian data over the last couple of weeks has been pretty muted, it would probably take a serious downside surprise to have a major effect on the currency.
Canada Data Preview - GDP (November)
January 29th, 2009 · No Comments
Tags: Canada Canadian Economy
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