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MARKET WRAP

• EURO DECLINES

• CANADIAN RETAIL SALES DISSAPOINT

• US CORE PCE & GDP IN LINE WITH EXPECTATIONS

A couple of big moves came today with the EURUSD dropping from the weekly/daily pivot resistance level of 1.1120, on the back of the UK House of Commons voting on PM Johnson’s Brexit deal and a stronger US dollar. US 10 year yields were down on the day whilst US equities continued to make all-time highs.

This afternoon the disappointing data out of Canada with a fall in Retail Sales MoM (Oct) -1.2% v’s 0.5% Expected, sent the Canadian dollar crashing. There has been a fall in economic results this month out of Canada and this Retail Sales number combined with a poor employment report will give the Bank of Canada concern. Earlier the US House voted 385 v’s 41 to approve the USMCA trade agreement and the BoC will need trade to pick up if it is to keep rates on hold as they did earlier this month.

US Core PCE rose in line with expectations with healthcare services inflation helping it to rise +0.1% MoM and +1.6% YoY. Increased consumption, rising wages and a narrowing trade balance are all positives for the US economy and earlier today the US Senate passed a two-bill spending package; which firstly avoids the need for a government shutdown but is also a fiscal expansion, with President Trump signing a $738 bln Defense Spending Bill.

#Fundamentals #Macro #News

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