USDCAD Overnight Range 1.3388-1.3429
Canada’s real Gross domestic product grew by 0.3% in July, surpassing the forecast for a 0.2% gain. Unfortunately, the June rise of 0.5% was revised down to 0.4% making this report a wash. However, the key takeaway is that Canada’s GDP is growing, albeit slowly. USDCAD dipped on the headline but quickly reversed course.
In the US, the ADP employment report posted a gain of 200,000 jobs vs. forecasts for a gain of 195,000. That isn’t enough to change non-farm payrolls forecasts, which is out on Friday.
It was a quiet range bound session in Asia. Equity indices all finished in the green to end a very lousy third quarter performance.
Europe wasn’t much better although inflation data did spark some interest. Eurozone inflation dipped into negative territory posting a decline of 0.1% which put downward pressure on EURUSD.
It is a month-end and quarter end today which should make for some interesting price action around the 1600 GMT fix. (8:00 PDT). There are reports/rumours that US dollars will be in demand.
USDCAD technical outlook
USDCAD technicals are essentially unchanged from yesterday. USDCAD is in an uptrend while trading above 1.3380 looking for a test of 1.3460. The dip to 1.3388 from 1.3429 is merely a correction within the context of the uptrend. For today, USDCAD support is at 1.3390 and 1.3360. Resistance is at 1.3430 and 1.3460.
Today’s Range 1.3380-1.3460
Chart USDCAD hourly.