The GDP figures for the first quarter, for March, and for April were all “bad” but within expectations. GDP dropped at an annualized 8.2 per cent in the first quarter. Economists had anticipated a 10 per cent decline. In April, the preliminary estimate is that GDP fell by 11%. The Canadian dollar remains at yesterday’s closing levels. Attention will now turn again towards international developments with Trump’s “China news conference” in focus. If the news conference is seen as leading to substantive deterioration in US/China relations, we expect the Canadian dollar to trade down. If, on the other hand, it is seen as campaign rhetoric then we do not expect the markets to be impacted.
