The USD/CAD pair rebounded to the upside on Friday, where some analysts were skeptic whether the EU debt deal would be able to contain the euro zone debt crisis, in addition to the mixed income report from the United States, which showed personal income rose below expectations to drive the savings rate lower in September, as traders shunned risky assets and targeted lower yielding ones, which put negative pressure on the Canadian dollar, sending the USD/CAD pair higher as a result.
Traders will be eyeing the FOMC rate decision next week, where the majority of analysts expect the FOMC to leave the current monetary policy unchanged, while on Monday, traders will be following the GDP figures from Canada, and the Chicago PMI from the United States.
Monday October 31:
Canada will release the industrial product price index for September at 12:30 GMT, where the index is expected to rise by 0.1% following the prior rise of 0.5% in August, while the raw materials price index is expected to drop in September by 2.4% following the prior drop of 3.2% in August.
Canada will also release the Gross Domestic Product estimate for August, where GDP is expected to expand by 0.2%, compared with 0.3% in July, while compared with a year earlier GDP is expected to expand by 2.2%, compared with 2.3% in the prior estimate.
The United States will join the session with the Chicago purchasing manager at 13.45 GMT, with expectations that the indicator could have retreated to 59.0 in October from 60.4 in September.
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