Overall positive revisions to Canadian GDP saved the Bank of Canada’s forecast bacon—and everyone else’s for that matter. That’s important to note in terms of what it says by way of slack estimates in the economy compared to what the BoC was likely tracking before this morning. Canada is inches from a full recovery in GDP now with October only about ½% behind pre-pandemic GDP levels (chart 1). {chart} Despite the stronger than expected results, the Canadian dollar depreciated after the release. That was probably much more driven by Fed Chair Powell’s hawkish pivot during Congressional testimony that consumed most of ... (full story)