Focus will be on Canadian GDP – TDS

Analysts at TD Securities (TDS) offered a brief preview of Friday's only important release of the Canadian GDP growth figures, scheduled later during the early North-American session.

Key Quotes:

"Canadian GDP could spark some real fireworks, as a miss to the downside would pave the way for a large rally in Canada ahead of the BoC monetary policy meeting next week."

"We look for Q3 GDP to rise by a muted 0.9%, slightly below the market consensus and Bank of Canada projections for 1.3%. Softer net exports will weigh on growth along with muted non-residential investment growth, while strong residential investment and a rebound in consumption will provide the main drivers to growth. For industry-level GDP, we look for a 0.1% increase in September (market: 0.1%) to provide a soft handoff to the fourth quarter, with manufacturing headwinds weighing on monthly GDP growth."