We’ll be getting both GDP release from Canada and U.S. I would be more interested in the U.S. release as it is the Adv. GDP quarterly release and it has more potential of moving the market than the Canada GDP m/m release… It is important that you only concentrate on one of these releases instead of both, as the market will be very tough to read with one release, let along 2 releases together.
Here is the forecast for Canada GDP
8:30am NY Time Canada GDP m/m Forecast 0.5% Previous 0.6%
ACTION: USD/CAD BUY 0.2% SELL 0.8%
GDP is defined (by wikipedia) as: “the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.”
As GDP is basically the measurement of the “economy” as a whole and it certainly has a tremendous impact on the official interest rate, because better GDP equals to higher inflation, and higher inflation means higher interest rate. With this week being a risk appetite driven market, a better than expected release has the potential of pushing USD/CAD to and below parity, therefore use extra caution when going against the bearish USD/CAD trend.
I’ll be looking to BUY USD/CAD if we get a 0.2% or lower release, and SELL USD/CAD if we get a 0.8% or higher…
Related posts:
- Canada GDP m/m 11/30/09
- Canada GDP (Gross Domestic Product) m/m 10/30/09
- Canada GDP m/m 08/31/09
- Canada GDP m/m (Gross Domestic Product) 09/30/09
- UK Revised GDP q/q 02/26/2010
- UK Revised GDP q/q 11/25/09
- UK Final GDP q/q 03/30/2010
- UK Revised GDP q/q 05/25/10
- Forex News Trading UK Prelim GDP 10/26/10
- Forex News Trading UK Revised GDP q/q 11/24/10
