By FX Empire.com
The USD/CAD pair extended its sharp decline on Thursday amid the huge wave of optimism that spread through global markets after EU leaders announced plans to ease the euro zone debt crisis and support Greece, which boosted demand for higher yielding assets including the Canadian dollar, as traders’ risk appetite improved, which put the USD/CAD pair under strong negative pressure.
Moreover, the U.S. Commerce Department released the advanced GDP estimate for the third quarter of 2011, where the U.S. economy expanded by 2.5%, in line with median estimates and compared with the prior expansion of 1.3% back in the second quarter, which also supported confidence levels, and put the USD/CAD pair under more pressure.
Traders will be eyeing theU.S.income report on Friday, which is expected to show that personal income and spending continued to improve at a moderate pace, while core PCE, the Fed’s favorite indicator for inflation, is expected to show that inflation remained subdued in September.
Friday October 28:
The U.S. will release the income report for September at 12:30 GMT, where personal income is expected to rise by 0.3%, compared with the prior drop of 0.1%, while personal spending is expected to rise by 0.6% after rising by 0.2% in August. Core PCE is expected to rise by 0.2% in September, following the prior rise of 0.1% in August, while compared with a year earlier, Core PCE is expected to rise by 1.7%, up from 1.6% in the prior estimate.
The University of Michigan will release the final estimate for consumer confidence in October at 13:55 GMT, where consumer confidence is expected to rise slightly to 58.0 from 57.5.
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