USDCAD Open 1.0998-03 Overnight Range 1.0990-1.1046
Commodity Bloc currencies are bouncing on the China trampoline; down on weak data and higher on stronger data. Last night was no exception. Slightly better-than-expected HSBC PMI data (Actual 50.5 vs. forecast 50.0) kept the Loonie in demand throughout the European session. Mixed Eurozone data was largely ignored. There was plenty of action but mostly militarily. The USA and friends launched bombing and missile strikes at ISIS bases in Iraq and Syria while Israel shot down an interloping Syrian fighter jet.
Canada serves up July Retail Sales data today which is expected to surpass forecasts of 0.5% and 0.0% for Core. If so, look for a test of 1.0950.
The intraday USDCAD technicals are bearish while trading below 1.1015 with a move through 1.0990 putting 1.0950 in play. A break above 1.10230 argues for further topside gains to 1.1050.
Today’s Range 1.0950-1.1020