Canadian economic growth likely to have accelerated in May

Canadian economic growth data for May is set to be released tomorrow. According to a TD Economics research report, the Canadian economic growth is likely to have accelerated to 0.4 percent sequentially in the month on the heels of a wide rebound in activity data. Goods output are likely to have advanced from energy and a rebound in manufacturing sales while utilities would act as a headwind on a return to seasonal temperatures after cold weather saw a sharp increase electricity output for April.

Residential construction is also likely to have been a modest drag on economic growth, though a sharp rise in June housing starts implies a rebound is right around the corner. On the service side, a wide growth is expected, with retail sales and food services advancing from the return to normal weather. This would leave the second quarter growth tracking near a 3 percent pace, slightly above Bank of Canada projections.

At 21:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at -27.8892, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -20.2557. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex