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BMO Sees Modest Rebound in Canada Monthly GDP, No Quick Resolution to Trade Talks

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Canada's economy might have "rebounded modestly" in the monthly gross domestic product release for April due out on Tuesday as the week's key data point, BMO Capital Markets said in a note.

"After successive quarterly declines, the economy likely rebounded slightly in Q2 (around 1% annualized)," Senior Economist Sal Guatieri said in the note. "The May flash estimate could point to continued growth given reported advances in retail and manufacturers' sales."

Also on the agenda for this week is a deadline over the Wednesday formal review date for the U.S.-Canada-Mexico trade agreement. "We're not holding our breadth for a quick resolution," the economist said, adding that trilateral talks have yet to begin.

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