Friday, November 4, 2011

Oh Canada! What happened??

NHL season began in October, so many Canadians are glued to their TVs until the wee hours of the night, and are not coming to work next morning. Jokes aside, what a crappy Canadian employment report this morning!

Manufacturing and construction employment took the biggest hit. It is not going to get any better, judging by -4.9% drop in building permits, and lower-than-expected Ivey PMI, both reported this morning as well.

This very poor data explains why Carney is on the wires on daily basis chastising EU for the world economic mess they created. Look for some dovish comments from him in the next few days. Canada's GDP is gonna take a hit I bet.

Lets also remember that RBA cut rates earlier in the week. Australian economy, commodity-driven just like Canadian, was revised downward in the latest RBA's growth outlook (released last night).

I say USD/CAD is to be watched closely for possible trip to 1.0335 on this bad economic data. But first it will need to get though 1.0220 though.

Update on Nov 9 @ 4:20 pm
It is very interesting that with today's sell-off in risk, with EUR and AUD breaking below their established boxes (ranges), USD/CAD is still in the box, and refuses to break above 1.0220
Of course just as I say this, sucker will rip higher :)
Still looking for USD/CAD 1.0335 or so before the end of this week.

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