USD/CAD is on the cusp of breaking 1.12 for the first time since 2009 ahead of the US personal consumption expenditure report and Canadian GDP at the bottom of the hour.
December personal spending may disappoint from the +0.2% after a soft consumption reading in yesterday’s GDP report and evidence of a slow holiday season for retailers. PCE data is the Fed’s preferred measure of inflation so the PCE deflator (exp +1.1%) and core PCE (exp +1.2%) will be in focus. The risks are to downside.
Canadian GDP is for November so we’re talking ancient history in economic terms but with USD/CAD at 1.1191, it won’t take much to crack 1.12.
