Canadian Dollar Rises Ahead of GDP Data, 25+ PIP Volatility Expected; Dec 01, 2020

Canada GDP m/m

Canada is going to publish GDP m/m data at 1330 GMT/1900 IST. It’s the broadest measure of economic activity and the primary gauge of the economy’s health. Important to note here that since last 6 months, Canada has released this data with positive numbers only. This time markets have predicted slightly lower data at 0.9 pct than previous reading of 1.2 pct. If actual data comes higher than expected, it will be good for Canadian Dollar.

Let’s see how CAD has reacted during the previous data release:

Oct 30:

Sept 30:

Technical View:

USD/CAD: The Canadian Dollar trades noticeably higher ahead of GDP data. The pair made intraday high at 1.3009 and low at 1.2942 marks. A sustained close above 1.3013 requires for the upside rally. Alternatively, current downside movement will take the parity down towards key supports around 1.2922, 1.2870, 1.2838, 1.28 and 1.2756 marks respectively. On the other side, key resistances are seen at 1.3013, 1.3070, 1.3138, 1.3190 and 1.3212 marks respectively.

Take a look and do trade wisely!
Good Luck