USDCAD, H1
Today’s US and Canadian data release sees – U.S. durable goods orders rebounded 1.3% in November, shy of expectations, from a revised 0.4% decline (was -0.8%; September’s 2.2% gain was revised up to 2.4%). Transportation orders increased 4.2% following October’s 3.9% drop (revised from -4.3%). Excluding transportation, orders dipped 0.1% from the prior 1.3% gain (revised from 1.0%). Non defence capital goods orders excluding aircraft slipped 0.1% too, after the prior 0.8% gain (revised from -0.5%). Shipments climbed 1.0% from 0.5% (revised from 0.4%). Non defence capital goods shipments excluding aircraft were up 0.3% from 1.3% (revised from 1.1%). Inventories increased 0.2%, the same as in October. The inventory-shipment ratio slipped to 1.66 from 1.67.
U.S. personal income rose 0.3% in November with spending up 0.6%. The 0.4% increase in October income was not revised (though September was nudged up to 0.5% from 0.4%). The 0.3% spending increase in October was bumped down to 0.2% (September’s prior 0.9% gain was nudged up to 1.0%). Compensation increased 0.4% versus 0.2% previously (revised from 0.3%). Wage and salary income improved 0.4% from 0.2% (revised from 0.3%). Disposable income rose 0.4% versus the prior 0.4% gain (revised from 0.5%). The savings rate slowed to 2.9% from 3.2%. The PCE chain price index increased 0.2% after October’s 0.1% gain, and posted a 1.8% y/y rate from 1.6% y/y previously. The core rate increased 0.1% from 0.2% and is up 1.5% y/y versus 1.4% y/y. The inflation rate
Canada GDP was flat (0.0%) in October after the 0.2% gain in September. The lack of growth in October GDP begins Q4 on a weak note, and makes the BoC’s 2.5% estimate for real Q4 GDP a bit of a stretch as we need very strong monthly GDP growth in November and December to achieve the BoC’s projected Q4 growth rate.is moving up slightly, but is still below the FOMC’s 2% target.
The results saw a sharp rebound in USDCAD from today’s low under 1.2700 pre-data to 1.2795. Next resistance is the H1 200 EMA and Daily R1 at 1.2815. Support is now the Daily pivot at 1.2755 and the cluster of fractal highs at 1.2745.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD consolidates recovery below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery but remains below 1.0700 in early Europe on Thursday. The US Dollar holds its corrective decline amid a stabilizing market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD advances toward 1.2500 on weaker US Dollar
GBP/USD is extending recovery gains toward 1.2500 in the European morning on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.