By FX Empire.com
The USD/CAD pair gained on Monday amid the ongoing fears from the European debt crisis, where despite the resignation of Italian Prime Minister Berlusconi and the appointment of former EU Commissioner Mario Monti as new Prime Minister, yet traders were worried after yields on Italian bonds rose to a euro zone era record, as Italy offered 3 billion euros in 5-year bonds, which sparked concerns in markets, especially amid the lack of economic data from the United States and Canada.
Rising concerns in markets boosted demand for lower yielding assets, which provided the U.S. dollar with strong bullish momentum that pushed the USD/CAD pair to the upside.
Traders will continue to monitor the developments from Europe regarding the debt crisis, amid the uncertainty that is surrounding the outlook of the EU debt crisis. Moreover, traders will be eyeing key data from the U.S. retail and manufacturing sectors, in addition to data on inflation. The USD/CAD pair should still be able to rise if concerns from Europe continue to dominate global markets, but we still expect volatility to continue to dominate trading, and that should also lead to high levels of fluctuations for the USD/CAD pair.
Tuesday November 15:
The U.S. economy will start the data at 13:30 GMT with the Producer Price Index for October which is expected with 0.1% drop after 0.8% rise and on the year to ease to 6.3% from 6.9%. Excluding food and energy it is expected with 0.1% rise from 0.2% and on the year to rise to 2.9% from 2.5%.
Also at the same time we have the Retail Sales Index for October which is expected to slow with 0.3% gain after 1.1% surge and excluding autos to rise 0.2% after 0.6% rise in September.
As for the Empire Manufacturing Index for November it is expected to ease the contraction to -2.30 from -8.48.
At 15:00 GMT the Business Inventories for September are due and expected to slow to 0.2% from 0.5% previous rise.
Canada will release the manufacturing sales index for September at 13:30 GMT, where manufacturing sales are expected to rise by 0.1%, compared with the prior estimate of 1.4% in August.
Originally posted here
