USD/CAD remains weak below 1.3300 after Canadian, US data
- The US Dollar remains stuck at multi-month lows after weak US PCE Inflation.
- US Durable Goods orders beat expectations, easing bearish pressure on the USD.
- Canadian GDP contracts unexpectedly in October.
The US Dollar maintains its bearish tone against the loonie. The mixed US macroeconomic figures have offset the weak Canadian Gross Domestic Product data leaving the languishing at multi-month lows below 1.3300.
Canadian Gross Domestic Product remained flat in October, according to data released by Statistics Canada. The final data falls short of market expectations of 0.2% growth and put into question the Bank of Canada´s hawkish forward guidance.
The negative impact on the Canadian Dollar, however, has been offset by the mixed US data, but especially by November´s PCE Prices Index, which contracted unexpectedly in November increasing hopes of Fed cuts in early 2024.
PCE Inflation eased 0.1% in the month and grew at a 2.6% pace in the year, below market expectations of 0% and 2.8% readings respectively. The Code PCE nudged up 0.1% on the month and 3.2% year-on hear. Market experts had anticipated 0.2% and 3.3% increases respectively.
On the positive side, US Durable Goods Orders increased beyond expectations, which eases concerns about the outlook of the manufacturing industry and has cushioned US Dollar´s decline.
Technical levels to watch