Canada GDP Rebound Seen Boosting Loonie, TD Securities Predicts

TD Securities economists Robert Both and Emma Lawrence expect Canada's Q2 National Accounts to show a sharp rebound in Gross Domestic Product (GDP) growth, driven by stronger exports and solid services activity.

The forecast expenditure-based GDP at 3.5% annualized and industry-level GDP up 0.3% m/m, with July flash data likely keeping Q3 GDP above potential output, reinforcing a constructive backdrop for the Canadian Dollar.

'Exports seen driving Q2 recovery,' TD Securities said, citing a sharp rebound from the Q4/Q1 slowdown with expenditure-based growth of 3.5%, underpinned by stronger exports.