Canadian GDP printed worse than expected at -0.1% versus 0.1% eyed while the third quarter annualized rate came in at 1.0% versus 1.5% eyed. The GDP for Q2 was revised higher to 2.3% from 2.0% initially reported. The news is likely to curb expectations of any additional BOC rate hikes for the foreseeable future and sent USD/CAD to a fresh session high of 1.0283 as trader exited the loonie on risk aversion flows.
North American markets are facing a negative start as fears over the solvency of the EZ periphery sovereign debt continue to weigh on the market. The EUR/USD tumbled through the key 1.3000 level in early New York session while yen and gold strengthened as safe haven demand dominated early trade.
However, the US economic calendar may prove to be more friendly to investors with Chicago PMI and Consumer confidence on the docket. Markets expect a small decline in Chicago data but a jump in Consumer confidence numbers. Given the strength of Philly, Richmond and Dallas data there is a chance that Chicago reading could also beat to the upside and stabilize investor sentiment as the day progresses.