US Q4 GDP and Canadian CPI amongst market movers today - BBH

Analysts at BBH point out that the North American session features Canada CPI and US Q4 GDP and are going to be the market movers for today’s session.  

Key Quotes

“Canada's CPI is expected to have softened in December.  A 0.3% decline would offset a rise of a similar magnitude in November and pull the y/y rate back below 2%.   Bank of Canada Governor Poloz did not seem particularly hawkish in comments from Davos.  Poloz noted that while the exchange rate is important for exporters, the key is the strength of its main export market, the United States.”

“The US reports Q4 GDP.  In doing so, it renders the other reports today, including the advance merchandise trade balance and durable goods orders, less interesting.  The Bloomberg survey found a median expectation of 3.0% SAAR, but the median has been underestimating the strength of the US economy.  This is what the data surprise models show.  The Atlanta Fed's GDPNow sees 3.4% growth and the NY Fed's tracker puts it at 3.9%.  Consumption is expected to have recovered smartly in Q4 after a disappointing 2.2% annualized pace was recorded in Q3.  Also, quarterly deflator used for consumption is GDP is expected to rise to 1.9%, which would be the strongest pace in 2017.”