The 0.1% m/m decline in Canada January’s GDP was milder than most expected, with oil & gas extraction showing a remarkable rebound. (Data released on Tuesday.) With oil & gas drilling activity slumping to record lows, this shouldn’t last. According to Capital Economics – “As things stand now, we estimate the economy grew by just 0.5% annualised in Q1. That would still be considerably weaker than the Bank of Canada’s forecast and, therefore, suggests that a rate cut in April shouldn’t be ruled out.”

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