A whole lot of data and it’s the loonie that benefits the most
Here’s my quick summary of all the data;
- US GDP – meh/touch soft
- Initial jobless – meh
- Philly Fed – Mixed but leaning towards good
- CAD retails – storming
- CAD CPI – Big jumps
All that said, USD has generally seen some weakness. USDJPY has fallen to 113.40, GBPUSD & EURUSD have taken around 20 pips back from their lows.
USDCAD is where the action is again as it tumbles nearly 80 pips to 1.2721
The inflation numbers were strong virtually across the board and the jump in the core number is huge in percentage point movement terms. Added to strong retail sales (although they can be volatile), it’s got the market thinking about a hawkish BOC again.
And guess what? I’ve taken another long on this drop with a view of running it into the BOC in Jan. I might be a sucker for punishment on this one as there’s quite a wait, and we’ve the holiday period and year-end to deal with but I had a great trade doing this a week or so ago and again, I don’t see anything that changes the BOC’s hold stance here. The only thing that gives me a slight worry is the CPI numbers. Last time I had to ride my longs down some 130 plus pips before the BOC, so this time I’m going in a touch smaller in case there’s further downside again. I’m in at 1.2730 and will look to buy further drops down to 1.2600 should we go there.
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