The US Dollar maintains its bearish tone against the loonie. The mixed US macroeconomic figures have offset the weak Canadian Gross Domestic Product data leaving the languishing at multi-month lows below 1.3300. Canadian Gross Domestic Product remained flat in October, according to data released by Statistics Canada. The final data falls short of market expectations of 0.2% growth and put into question the Bank of Canada´s hawkish forward guidance.

The negative impact on the Canadian Dollar, however, has been offset by the mixed US data, but especially by November´s PCE Prices Index, which contracted unexpectedly in November increasing hopes of Fed cuts in early 2024. PCE Inflation eased 0.1% in the month and grew at a 2.6% pace in the year, below market expectations of 0% and 2.8% readings respectively. The Code PCE nudged up 0.1% on the month and 3.2% year-on hear. Market experts had anticipated 0.2% and 3.3% increases respectively. On the positive side, US Durable Goods Orders increased beyond expectations, which eases concerns about the outlook of the manufacturing industry and has cushioned US Dollar´s decline.