CAD: Strong Canadian 2Q GDP already baked in the cake – ING

Ahead of the early September Bank of Canada (BoC) meeting, the focus will be on Canadian 2Q GDP data his week (Thursday), points out the analysis team at ING.

Key Quotes

“Market consensus is for a release in the region of 3.0-3.5% QoQ annualised, which would be slightly above the BoC's forecasts. Our economists note that growth has been very broad-based so far in 2017, which is encouraging, although the sub-2% inflation backdrop and the growing list of uncertainties (US politics and NAFTA) are reasons to remain cautious.” 

“With markets pricing in a 65-70% chance of an October BoC rate hike, any good news on the Canadian growth front is arguably already priced in. Of greater market importance may be the more forward-looking data releases, with July industrial production (Tuesday) and August manufacturing PMI (Friday) also due next week.”