USD/CAD jumps above 1.32 on disappointing Canadian GDP figures

Canadian economy contracts in December.
Annual core PCE in the U.S. stays unchanged at 1.9% in December.
Coming up: Manufacturing PMI from both Canada and the U.S.

Eren Sengezer FXStreet

The USD/CAD pair gained nearly 100 pips in a matter of minutes after the data published by Statistics Canada revealed that the Canadian economy contracted 0.1% on a monthly basis in December. As of writing, the pair was up 0.4% on the day at 1.3220.

Further details of the report showed that the real GDP's annual growth rate in the fourth quarter slumped to 0.4% from 2% in the third quarter and missed the market expectation of 1.2%.

On the other hand, the U.S. Bureau of Economic Analysis announced that the core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation, stayed unchanged at 1.9% in December. On a negative note, personal income declined by 0.1% in January after rising 1% in December and personal spending decreased by 0.5% in December. Despite the mixed data, the US Dollar Index was up 0.05% on the day at 96.27.

Later in the session, the IHS Markit will publish the Manufacturing PMI data for Canada and the United States. Additionally, the University of Michigan will release the final reading of the Consumer Confidence Index in February

Technical levels to watch for

USD/CAD

Trends:
    Daily SMA20: 1.3205
    Daily SMA50: 1.3321
    Daily SMA100: 1.3268
    Daily SMA200: 1.3164
Levels:
    Previous Daily High: 1.3208
    Previous Daily Low: 1.314
    Previous Weekly High: 1.3294
    Previous Weekly Low: 1.3134
    Previous Monthly High: 1.3341
    Previous Monthly Low: 1.3069
    Daily Fibonacci 38.2%: 1.3182
    Daily Fibonacci 61.8%: 1.3166
    Daily Pivot Point S1: 1.313
    Daily Pivot Point S2: 1.3102
    Daily Pivot Point S3: 1.3063
    Daily Pivot Point R1: 1.3198
    Daily Pivot Point R2: 1.3237
    Daily Pivot Point R3: 1.3265

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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