Canada: Upside GDP surprise to produce a knee-jerk move lower in USDCAD - TDS

According to analysts at TD Securities, given the repricing of the BoC and the positive flow of NAFTA headlines, they think the loonie has priced in a lot of the good news.

Key Quotes

“An upside surprise in GDP would produce a knee-jerk move lower in USDCAD, though the bigger risk is a downside miss in the release.”

“On TD's forecast, we would use a "good number dip" as a buying opportunity in USDCAD as we see little room for a September hike and the NAFTA theme loses its luster.”