By FX Empire.com
The USD/CAD pair rose on Monday, as pessimism dominated markets once again after a German official signaled that markets shouldn’t expect a final resolution to the European debt crisis at next week’s EU summit, which pushed investors away from higher yielding assets, where traders targeted lower yielding assets including the U.S. dollar, which sent the USD/CAD pair higher.
Traders will continue to monitor the latest developments from Europe, as after optimism was spread in markets after the G20 vowed to support Europe and called for the IMF to have a bigger role in the crisis, pessimism dominated markets once again, and that could provide the USD/CAD pair with more bullish momentum on Tuesday. We should also note that traders will be eyeing Chinese growth data on Tuesday, in addition to inflationary figures from the United States.
Tuesday October 18:
At 12:30 GMT the U.S. Producer Price Index for September is due and expected with 0.2% rise on the month after it remained unchanged in August and on the year to ease to 6.4% from 6.5%. Core PPI index is expected also with 0.1% on the month in line with August and on the year to ease to 2.4% from 2.5%.
At 13:00 GMT the August TIC flows is due after in July the net long-term TIC flows recorded $9.5 billion rise and the total net TIC flows recorded net selling of $51.8 billion.
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