Economists at TD Securities expect industry-level GDP to rise by 0.3% in April. The Canadian data will have little to no impact on the loonie, with the USD/CAD pair expected to find solid support at 1.28.

Relief in risk assets to be short-lived

“We expect industry-level GDP to rise by 0.3% in April, in line with the market consensus and slightly above the flash estimate for a 0.2% rise.”

“April's data, let alone an on-consensus GDP print, will have no meaningful impact on the CAD.”

“Data will inevitably get worse as the impact of higher rates filters in. Reprieves in risk assets are also likely to be short-lived. Thus, USD/CAD dips should ultimately be faded. Support near 1.28.”