Forex News

BoC minds the gap

In last week’s we asked the question: “Is the Canadian output gap positive?”

Ignore the ADP employment indicator because it lags payrolls.

The QIII Current Account Deficit (CAD) shrank by 10% to $12.5bn (i.e. 3% of GDP).

We expect tomorrow’s real QIII GDP to rise by 0.7%.

Residential building approvals surged by 11.4% in October to be 2.5% higher over the year.

1H FY3/15 results at the nine major life insurance firms show that their foreign asset

The manufacturing PMI report was a decent reading.

The volume of construction work done fell by 2.2% over QIII to be 5.1% lower than a year ago.

The bearish shooting star on Thursday (confirmed with Friday’s decline) and

Ifo index up against expectations.

The 4% stronger USD this year, impact on inflation – is it enough to worry Fed? Maybe not yet. But… what else?

Weakness in manufacturing far from over. Services undershoot in Germany.