Canada’s employment report and PMI to provide momentum to Loonie

Canadian economy registered no growth and posted flat retail sales in October as recent economic data dragged the economy to the downside. The market wonders if more policy stimulus will be needed in 2016 as lack of momentum points to a slow growth in the fourth quarter. Traders will try to find clues about the monetary policy stance form Bank of Canada Governor Poloz's speech in Ottawa, on Thursday.

PMI data and employment reports are scheduled on Thursday and Friday respectively. After November's decline, December's employment report is expected to post +9.78k (consensus) versus previous -35.7k. The U.S. Nonfarm Payroll report and oil prices will be the price determinants for the loonie this week. CAD could be weighed down by strong NFP combined with a modest local employment data.