Yesterday, we learned that Canada’s GDP grew 0.3% for July, confirming that the country is already out of recession! Obviously, this helped the loonie, which performed well against the greenback and the euro. The single currency is having another tough day today, with the drop in inflation seen in September hinting at the possibility of new intervention by the European Central Bank (ECB). Over the past three months, the euro has risen by 1% against the U.S. dollar and 6% against the Canadian dollar.
A budget standoff was narrowly avoided south of the border, although members of Congress simply put off the problem until December 11. Democrats and Republicans remain divided over the question of the annual debt ceiling currently in effect to govern the federal budget.
As we await U.S. job market data tomorrow, we’ll be keeping an eye on Initial Jobless Claims today at 8:30 a.m., the ISM Manufacturing Index at 10 a.m. and a speech by San Francisco Fed President John Williams at 2:30 p.m. Have a great day. Emmanuel Tessier-Fleury
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