Yesterday’s disappointing report on the UK Retail Sales during the month of October indicated that the weakness in the British economy still persists when the index dropped below the expectations reaching -0.6%, which is its low since February 2014. The September data was also revised to 1.7% from 1.9% posted previously.
The US economy nevertheless proved to be on the right track towards the likely interest rate hike in December. The unemployment claims declined matching the expectations, showing 271.000 unemployment insurance forms were submitted by individuals for the first time within a previous week, comparing to 276.000 of the prior release.
Adding to that, Philly Fed Manufacturing Index, the leading indicator of the country’s economic health, has improved to 1.9 mark, as it came higher than 0.1 originally expected by the market consensus. That was also a substantial progress from the September’s data, published at -4.5 level last month.
Despite the positive outlook of the US data, the US dollar continued to decline yesterday, hitting 98.79 low during the previous trading session. The index nevertheless has gained a strong bullish momentum this morning.
This day of economic events is expected to be quiet, with the main focus of the traders shifting towards Canadian releases this afternoon.
The Canadian Core CPI release, which is a benchmark inflation gauge of the Canadian economy, will take place at 1.30 pm London time. The core year-on-year inflation rate is expected to remain at 0.2% this time.
Simultaneously, investors will be looking at the Canada’s Core Retail Sales data, which is anticipated to decline to the negative territory for the first time since June, as the index is projected to drop to -0.3% this time.
Should the actual numbers come higher than projected, it will likely give a support to the Canadian dollar whereas vice versa will be applicable if the opposite scenario will take place.