Canadian Inflation in Focus | Oil Plunges 5% on Saudi Output Increase
Published November 23, 2018
The loonie has slid against the US dollar in the morning session, trading up 0.30% at 1.3252. Canada also will be releasing key consumer inflation and spending data today, with CPI expected to record small gains of 0.1% and core retail sales gaining 0.3%.
The composite purchasing managers index for the euro area fell to 52.4 in November, as prospects for an uptick in Europe diminish. Notably, German PMI data confirms the country’s first contraction since 2015. Markit US manufacturing, service and composite PMI’s are also due this morning.
A barrel of West Texas Intermediate has plunged more than 5% this morning, trading below $51.80. The continued losses are marked by Saudi Arabia’s indication that outputs have reached new records. This selloff has seen oil prices fall below key technical support levels which imply further losses are impending.
Looking ahead to next week, President Trump is preparing for talks with Chinese leader Xi Jinping at the Group of 20 Summit in Argentina. Both American and Chinese trade representatives have been in close communication ahead of the pivotal meeting. Rigidities endure as the US plans to move forward with restrictions on technology exports to China.