US Q2 GDP rose 3.0%, handily beating the 2.8% forecast and giving the US dollar a lift.  If anything, the data should keep the question of a December rate increase on the table.  The GDP data wasn’t the only US economic release giving the greenback a lift. August ADP data showed a gain of 237,000 jobs suggests upside risks to Friday’s nonfarm payrolls number of 180,000.

Canada posted a better than expected Current Account deficit.  The news didn’t help USDCAD  which rallied from 1.2522 to 1.2582 on the back of the robust American data.

President Trump, accused of acting “presidential” with his response to the Houston crisis, reverted to form today. He tweeted  “The U.S. has been talking to North Korea, and paying them extortion money, for 25 years. Talking is not the answer!”

Those comments led to modest safe haven demand for Japanese yen and Swiss francs.

There was a lot less drama in overnight markets where traders took a break from the volatility seen over the past two days

In Asia, USDJPY extended Tuesday’s gains,  supported by stronger than expected Japan July Retail Trade data (Actual 1.9% vs. forecast 1.1%, y/y)   Fading concerns for an escalation in the US/North Korea war of words, helped.  Ooop’s, that was a mistake.

AUDUSD jumped on better domestic data as well. Construction Work Done, and Building Permits beat forecasts, lifting AUDUSD from 0.79433 to 0.7994.  However, the rally reversed in Europe.  The currency started in New York at 0.7955.

NZDUSD rallied in concert with AUDUSD  until outgoing RBNZ Governor Graeme Wheeler said that a weaker New Zealand dollar was needed.  NZDUSD dropped from 0.7275 to 0.7240.

EURUSD was under pressure and continued to slide after peaking at 1.2067 on Tuesday and reached a low of 1.1893 after the US data.   Prices bounced when  Eurozone economic confidence data beat forecasts. And Trump tweeted.

GBPUSD was very choppy in a 1.2897-1.2936 range due to mixed data releases data and ongoing Brexit issues. It opened in New York unchanged from yesterdays close.

Oil prices are weighed down by the uncertainty of the impact of Hurrican Harvey. Crude prices are lower while gasoline futures have risen.

USDCAD Technical outlook:

The intraday USDCAD technical’s are bullish while prices are above 1.2520 with a break of 1.2605 extending gains to 1.2640.  Above 1.2650 opens the door to 1.2850. A move below t 1.2520  will lead to 1.2460 and then 1.2415. For today, USDCAD support is at 1.2520 and 1.2480.  Resistance is at  1.2605 and 1.2640

Today’s Range 1.2520-1.2620