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The US Dollar remains stuck at multi-month lows after weak US PCE Inflation.
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US Durable Goods orders beat expectations, easing bearish pressure on the USD.
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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 fell short of market expectations for a 0.2% increase and called into question the Bank of Canada’s hawkish forward guidance.
The negative impact on the Canadian dollar, however, was offset by mixed US data, but particularly by the November PCE price index, which unexpectedly contracted in November, raising hopes for Fed cuts as early as 2024.
PCE inflation fell 0.1% on the month and increased to a 2.6% pace on the year, below market expectations of readings of 0% and 2.8%, respectively. Code PCE rose 0.1% in the month and 3.2% in the year hearing. Market experts had expected growth of 0.2% and 3.3% 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.
