Barclays Research notes that the main focus in Canada will be on the BoC’s monetary policy meeting (Wed) as well as the release of GDP data for Q1 (Thurs).
"We expect the BoC to keep the policy rate unchanged at 1.25% at its meeting on Wednesday, in line with consensus.
Activity data will also be important this week (Thursday). We forecast GDP to grow 2.5% q/q annualized in Q1 (previous: 1.7%) and the monthly GDP to increase 0.33% m/m (3.0 y/y) in March. Data surprises and trend have stabilized following a fall early in the year, and high frequency indicators indicate the pace of GDP will be similar to February’s, keeping the rebound seen after the surprise contraction in January. A strong GDP print will generate more confidence about the BoC’s potential action in July," Barclays argues.