The overnight session started off with weak industrial output data from China, adding to the confirmation of the country’s economic slowdown. Once increasing by close to 20% back in 2010, the country is now seeing industrial output rising only 7.2%, slower than the 7.6% expected, when compared to the previous year. The rise in industrial production was the slowest in the last three months, and seems to be continuing on its downward trajectory because of weak demand from foreign purchasers. This does give a dovish indication for future rate movements; however, with the speculative surge in the mainland’s equity markets, continuing to cut rates may leave the PBoC adding further fuel to the fire in an already overheated market. At the time of this release, currency markets were mostly unaffected; however, the Shanghai Composite and Hang Seng Index both experienced short term fluctuations, slipping close to 0.2% before slowly recovering. Yesterday saw Bank of Canada Governor Poloz give a pessimistic speech at the Economic Club, with the main theme being that global banks will have to reduce their financing to companies as tougher banking regulations take hold and that these efforts will be essential in preventing another financial crisis. With inflation recently rising for Canada, Poloz reiterated a dovish tone stating that the Canadian economy is about two years away from stable growth and that inflation targets will remain steady at the 2 percent mark. South of the border, the United States was struck with a wave of positive economic data. Retail sales, unemployment claims, and import prices all came out positive for the US Economy. Taking the spotlight was retail sales which increased by 0.7% versus the expected 0.4% increase for the month. With the help of holiday shopping and lower gasoline prices, these numbers could add a strong boost to the confidence in the recovering US Economy. Subsequently, these data releases could also add an extra push to the Federal Reserve debate on when and how fast U.S. interest rates will rise. With the help of these events, the USDCAD managed to punch through the 1.15 mark, reaching levels unseen since July 2009. Today’s North American economic calendar is highlighted by producer price index numbers from the US. The PPI index for the month of November missed analyst expectations by 0.1% with price levels decreasing by 0.2%. The soft producer price readings signal disinflationary pressure in the US economy since any decrease in producer prices is expected to eventually be passed onto the consumer. Today’s data release will give market participants a good outlook towards future CPI numbers and overall inflation expectations in the American economy, and thus we’ve seen the greenback pullback slightly against the loonie; however the pair is still trading above the 1.15 handle. To finish off the week, the University of Michigan will be releasing their consumer sentiment survey numbers. With consumer sentiment as of November at post-recession highs but still remaining below pre-crisis norms, we can see room for improvement in consumer expectations. In our latest podcast we talk about US jobs, the ECB’s dilemma, a run down of slippery oil and an interesting interview with Itai Furman. Download it directly here. Subscribe to our podcast on iTunes. David Starkey David Starkey David Starkey is a currency options dealer and market analyst for Cambridge Mercantile Group. A fascination with the everyday impact of globalization on society led David to pursue a degree in International Business from the University of Victoria. From there Forex was a natural fit. He has worked as a currency trader, risk manager, and hedging expert in both Canada as well as the United States for several non-bank brokers. Cambridge Mercantile Group. View All Post By David Starkey Daily Look share Read Next US consumer confidence rises to 93.8 – best since Yohay Elam 8 years The overnight session started off with weak industrial output data from China, adding to the confirmation of the country's economic slowdown. Once increasing by close to 20% back in 2010, the country is now seeing industrial output rising only 7.2%, slower than the 7.6% expected, when compared to the previous year. The rise in industrial production was the slowest in the last three months, and seems to be continuing on its downward trajectory because of weak demand from foreign purchasers. This does give a dovish indication for future rate movements; however, with the speculative surge in the mainland's equity markets,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.