November Producer Price Index to be released at 08:30
FX Action: USD-CAD accelerated to a two year high FX Action: USD-CAD accelerated to a two year high at 1.0628 after finally taking out the July peak at 1.0608, on track to test the October 2011 peak at 1.0657. The pair dipped initially on the firmer than expected GDP data this morning. But risk lingers that the BoC will soften its stance still further next week, mindful of inflation that has persistently undershot its target. Notably, the CD Howe Institute's MPC has recommended that the Bank add forward guidance, "indicating willingness to lower interest rates should the disinflationary output gap in the Canadian economy not close as fast as expected, and should inflation look likely to stay below target longer than expected."
U.S. Manufacturing ISM Preview U.S. Manufacturing ISM Preview: The November ISM will be released on Monday and analysts expect the headline to ease to 55.0 after an increase to 56.4 in October. Other measures of producer sentiment for November have all declined thus far with larger than expected declines in the Empire State and Philly Fed but a smaller than expected decline in the Chicago-ISM.