Analysts at TD Securities noted the key event for the loonie next week.
“GDP growth will end 2015 on a flat note, with no growth expected in the 4th quarter. Consumer spending will decelerate from Q3 to +0.6% ann., residential investment should remain a strong 3.0% and net exports will provide a tailwind on lower import volumes. Offsetting all this will be a plunge in non-residential investment.
Because this forecast is in line with the Bank of Canada’s estimate of flat Q4 growth, it reinforces our view that the Bank will remain on the sidelines at the March 9th FAD in anticipation of fiscal stimulus to be unveiled later in the month.”
(Market News Provided by FXstreet)