The U.S. Dollar managed to erase some of the losses from Thursday. Price action managed to post a reversal sending most of the currencies to close weaker or subdued by Friday.
Data from the Eurozone showed that import prices in Germany rose 1.0% on the month. This beat estimates of a 0.4% increase and showed an acceleration from 0.4% previously.
Retail sales were, however, lower, falling 0.3% missing estimates of a 0.4% increase. The flash inflation estimates for the Eurozone registered a dip as inflation rose just 2.0% in November against estimates of a 2.1% increase. Core inflation was also weaker at 1.0%.
The NY trading session showed that Canada’s GDP contracted 0.1% in September on a monthly basis. This brought the third quarter GDP to rise just 2.0% in the three months ending September.
The G20 summit concluded over the weekend. The big news out of the event was that the United States and China agreed to a 90-day truce. This comes as both nations agreed to work out the trade differences. This meant that the planned hike on tariffs on over $200 billion worth of goods from China which is due to take effect from Jan 1 would now be postponed.
Meanwhile, China agreed to increase its purchase of U.S. goods including agriculture, energy and industrial products to reduce the trade deficit.
Looking ahead, the first trading day for December will see the Manufacturing PMI reports from the Eurozone. The final Eurozone manufacturing PMI is forecast to remain steady at 51.5, marking an unchanged print from the month before.
In the U.S. the ISM’s manufacturing PMI is expected to ease to 57.5 from 57.7 in October. Construction spending data is forecast to rise 0.4% on the month.
