USDCAD - No surprises this time for Canadian GDP
Unlike the last Canadian GDP reading, this one was very tame as GDP quarter on quarter for Q3 came in at 0.3% vs prev. 0.9%.
In an immediate reaction, USD/CAD pushed higher but the main thing here is how the BoC will react to the fact that the data is not dropping in line with their thoughts.
Oil today has been holding at higher levels as the market is anticipating that the OPEC+ nations will confirm the output cuts will remain in place till the end of next year. The Saudi's cannot afford to cut anymore and for the price to fall as the Aramco IPO draws closer.
Back the Canadian dollar now and the raw materials price index also fell -1.9% for October which is a concern as the trade war saga must be having an impact on demand for Canadian raw goods and materials.
Next week we have the rate decision from the Bank of Canada and consensus is for rates to remain unchanged. However, the bank may have further ammunition to take a dovish tone after the trade war negotiations between the US and China hit a snag and Canadian corporate profits hitting lower levels for the quarter.