Daily Afternoon Report 30.11.2015

The U.S. dollar slipped lower against its Canadian counterpart on Monday, but remained within close distance of a one-month high after data showed that Canada’s current account deficit narrowed less than expected in the third quarter.

Statistics Canada reported on Monday that the country’s current account deficit narrowed to C$16.2 billion in the third quarter from C$16.6 billion in the second quarter, whose figure was revised from a previously estimated deficit of C$17.4 billion.

Meanwhile, the greenback remained broadly supported by growing expectations that the Federal Reserve will raise interest rates next month.

Sentiment on the euro remained vulnerable as European Central Bank President Mario Draghi has been signalling in recent weeks that the bank is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing.

Earlier Monday, data showed that German retail sales fell 0.4% in October, compared to expectations for a 0.4% rise and after a flat reading the previous month.

In addition, a preliminary report showed that German consumer prices rose 0.1% in November, in line with expectations, after a flat reading in October.