Bank of Canada to remain on hold in its final decision of 2014

•      Bank of Canada to remain on hold in its final decision of 2014

•      The Canadian inflation is rising and the recent batch of data suggest a strong momentum, nevertheless, declining oil prices are likely to keep BoC on hold, leaving CAD vulnerable on the long-term.

•      Short-term: a less dovish statement than previously could benefit CAD, not so against USD, but more vs its crosses like EUR and JPY.

•      AUD/USD plunged to a 4 year low after GDP data fell short of expectations

•      GDP grew 0.3% qoq in Q3, from 0.5% qoq in Q2, missing expectations of a 0.7% qoq rise

•      A lower exchange rate is needed for Australia to achieve balanced growth and the ongoing decline of key commodities are likely to keep the AUD under selling pressure.

•      NZD/USD was the second worst performer pair after whole milk powder price (the country’s main export product) fell 7.1% at the latest auction. It could test 0.7770 against

•      Overnight, China’s non-manufacturing PMI and HSBC service-sector PMI, both for November, increased a bit. These were not enough to reverse the negative sentiment against AUD and NZD

•      Today:

•      Final service-sector PMIs for November: For Eurozone, Germany and France

•      Eurozone: Retail sales for October

•      UK: service-sector PMI for November

•      US: The US ADP employment report for November and final Markit service sector PMI and the ISM non-manufacturing index both for November