Canada Q2 GDP up next
The Canadian dollar is in the crosshairs at the bottom of the hour. The consensus is for 3.7% annualized growth, which will put the year-over-year number at a stellar 3.6%, which would match the best y/y reading in 15 years.
However economists at Scotiabank say to ignore the headline:
"The reading watch is probably not GDP but more about what economists call final domestic demand which adds up consumption, housing investment, business investment and government spending. Think of it as a cleaner gauge of underlying momentum in the domestic economy that is not directly influenced by volatile swings in inventories and trade figures particularly on the import side since last year. If June comes in roughly flat then, combined with the hand-off from Q2, we might be left tracking GDP growth of under 1% in Q3."
