Euro Trading Near Monthly Lows | Canada GDP Headlines a Light North American Calendar
Published November 29, 2019
The euro fell below 1.100 against the US dollar this morning, despite Eurozone Inflation and German Unemployment numbers coming in better than expected. When currencies fail to get a boost from positive data, this typically signals a much deeper underlying weakness in the currency. Today’s euro reaction could simply be a result of poor liquidity and choppy pricing due to the US holiday, but only time will tell if this is indeed the case.
Canadian monthly GDP data is set to be released this morning, with consensus forecasts pointing to modest monthly growth of 0.1% and annualized growth of 1.2%. The previous annualized growth rate was 3.7%, so the expectation is for a sharp deceleration in the Canadian economy. Given that traders have largely priced this in, a surprise GDP reading in either direction could make for a big move in the Loonie that would be further exaggerated by thin market liquidity.