Summary:

• Canadian manufacturing sales beat expectations
• Prior reading revised lower however
• USDCAD remains near prior support around 1.2380

It’s a quiet afternoon on the data front form North America with the Canadian manufacturing sales one of only two releases of note (the other is the Uni Mich number at 3PM). The number for November showed a faster than expected rise of 3.4% against consensus forecasts for 1.9% and a marked increase on the prior reading of -0.6% (revised lower from -0.4% previously.) 

 Canadian manufacturing sales have picked up in recent month after a sharp decline int he earlier parts of 2017. Source: XTB Macrobond

Whilst the figures are better than expected and continue the recent improvement seen in this economic indicator it has done little for the Canadian dollar. Barring the New Zealand dollar, which itself is lower across the board, all other G10 currencies are gaining against the Loonie today. 

 The Canadian dollar is lower on the day despite a decent set of data. Source: xStation

Looking at the CAD crosses the USDCAD is one of the most interesting with the pair looking to bounce from the prior support zone around 1.2380. After the sharp drop seen around the turn of the year the USDCAD has attracted some buying and is looking to move back higher. A clean break below 1.2380 however would deal the market a hammer blow and could pave the way for further declines towards 1.2065.  

 

 USDCAD is bouncing from prior support around 1.2380. Can the market recover some of the recent declines? Source: xStation