Canada: Current account deficit is likely to approach the record shortfall - BBH

Research Team at BBH, suggests that the US data stream is light with house prices and consumer confidence the only reports of note but the main data release if from Canada which reports Q2 current account.

Key Quotes

“The deficit is likely to approach the record shortfall posted in Q3 2010 of C$20.2 bln.  The larger the deficit, the more the downside risk of Q2 GDP, which will be reported tomorrow.  Canada is the only G7 country that appears to have contracted in Q2.  The median forecast is for a 1.5% annualized pace of contraction. The US dollar may challenge a downtrend against the Canadian dollar that comes in today just below CAD1.3100.”