Loonie Trades Sideways as GDP Misses and G20 Meetings Start

Friday, November 30, 2018


Data out of Canada this morning has done little to move the loonie as traders seem cautious heading into the G20 meetings. Canadian GDP slowed 0.1% versus an expected 0.1% gain making it near certain the Bank of Canada will not raise interest rates again in December. The raw materials price index was a beat at -2.4% versus expectation of -5.2%. Falling oil prices still remain a risk for the CAD and markets will await any announcements from the OPEC meeting next Thursday.
The USD is firm on the day also reflecting overall caution against the G20 backdrop. Among other trade and political risks, US trade relations with China will be an issue markets will watch closely. The lone data release was the Chicago PMI at a large beat of 66.4 versus a 58.6 expectation.
The EUR is down as inflation data missed expectation. Total CPI came in at 2.0% versus 2.1% and core CPI at 1.0% versus 1.1%. The overall Eurozone unemployment rate also ticked up to 8.1% from 8.0%.
Equities are mixed this morning: the Dow down 0.27%, the S&P up 0.02%, NASDAQ up 0.28% and the TSX down 0.37%. Crude Oil is down 1.46% ($50.70) and Gold is also down 0.35% ($1,223.60).


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