Market Focus

On Tuesday, October 31, 2017, pay attention to the data on Canada’s GDP. Gross Domestic Product (GDP) is a general indicator of economic activity and is a key indicator of the economy health.

According to the forecast, the GDP grew by 0.1% in August, which is higher than the value of 0.0% in the previous month. The sale of oil is a significant component of the formation of Canada’s GDP. Given the fact that in August, oil prices remained positive, the likelihood of a higher Canadian GDP growth remains. In case of data release within the forecast, the Canadian dollar will receive some support. So, one should expect the Canadian currency to grow within 30-40 points against its competitors.

Later, the head of the Bank of Canada Poloz will hold a speech, which may cause higher volatility of the Canadian currency. Most likely, Poloz may speak about reducing the inflation rate that can delay the tightening of monetary policy for a long period of time and put considerable pressure on the Canadian dollar.

Alexander Sivtsov