The highlight of the North American calendar later is the ISM manufacturign report for the US but Canadian November GDP along with the advanced December report are also due.
CIBC offers a view on what to look for:
The old news should be good news, but new information
for December could signal an economy already stalled by the Omicron wave. GDP
growth for November is expected to show a solid advance of 0.4%, a tick above
the advance estimate which seemed a little light relative to available industry
data. Retail sales were strong before Covid cases started to rise again, other
services will have continued to recover and some relief was being seen
throughout the supply chain for autos. However, the advance estimate for
December is likely to show a flat or even slightly negative growth rate. Early
industry data have been mixed, with a fairly sizeable decline in retailing and
flat reading for wholesaling unlikely to have been offset by the moderate
advance in manufacturing. Reports of people cancelling holiday travel and
restaurant plans could also show up in December’s figures, but those areas are
likely to be bigger negatives in January as restrictions tightened.
Meanwhile the loonie continues to benefit for rising oil prices. USD/CAD is down 12 pips so far today with crude up another 30 cents.
Read More: Canadian GDP coming up on Tuesday, what to watch for