Canadian Dollar Plunges Post Awful Retail Sales
- Canadian retail sales dropped by 0.1% in July 2014, down from the previous gain of 1.2%.
- Canadian core retail sales also declined by 0.6% in July 2014, down from the previous gain of 1.5%.
- Euro zone services and manufacturing PMI were not impressive, but somehow managed to gain attention of the Euro buyers.
- German services PMI registered an impressive reading as it climbed from 54.9 to 55.4.
- EURUSD pair was seen trading higher during the London session, as the Euro buyers were put to a test.
Canadian Retail Sales
The Canadian retail sales figures were released by the Statistics Canada about an hour ago. The market was expecting the Canadian retail sales to register a gain of 0.5% in July, 2014, compared to the last month’s gain of 1.2%. The outcome was not as expected, as the Canadian retail sales registered a decline of 0.1% to $42.5 billion. This was the first decline in the last six months, according to the report published. Moreover, the core retail sales (ex Autos) declined by 0.6%. The report highlighted that the retail sales were down in four provinces in July.
The reaction from the Canadian dollar was obvious, as the USDCAD pair jumped higher immediately after the release. The pair traded as high as 1.1039 before finding a few sellers around the mentioned level. The pair traded lower before the release, and tested the 1.0980 support area. This particular release might cause more downside in the pair in the coming sessions.
The decline in the Canadian dollar ignited down moves in the AUDUSD and NZDUSD pairs as well. The NZDUSD pair created a new monthly low after the release.
Euro Zone Manufacturing PMI
There were a couple of economic releases during the London session, including the Euro zone manufacturing and services PMI. The outcome was not encouraging, as the Euro zone services PMI fell from 53.1 to 52.8, and the manufacturing PMI remained flat at 50.5. The Euro buyers somehow liked the end result, and the EURUSD pair was seen trading higher above the 1.2850 resistance zone.
Moreover, the German manufacturing and services PMI’s were also released by the Markit Economics. The outcome was mixed, as the services PMI registered a rise and manufacturing a decline.
US Manufacturing PMI
There was one important release in the US during the start of the NY session. The US manufacturing PMI was released by the Markit Economics. The forecast was slated for a rise from 57.9 to 58.0, but the outcome was flat at 57.9. However, the US dollar buyers were unfazed, as it was seen trading higher against the Euro, the British pound and the Aussie dollar.
The USDJPY pair surged higher during the NY session and climbed back towards the 108.80 level after trading as low as 108.30. There is a major resistance around the 108.80-109.00 levels, so if the pair manages to clear it, then a move towards the recent high of 109.45 is possible in the near term.
"Patience is the key for success"
Oliver Miller is one of the best financial analyst with 18 years of online trading experience
UK Nationwide Housing Prices highlighting the value of the houses prices in UK and indicate current movements in the housing market posted an increase of 1% in April, compared to the preceding month.
US dollar continued to weaken against a few currencies and managed to recover some ground against currencies like the Euro and the British Pound
Taking into account today’s volatile economy GTCM endeavors to provide its clients with a secure trading environment and strong financial services. We aim to establish a strong relationship with our customers by providing them with ease, transparency and accountability on all their account activities
Banc De Binary is home to the 21st century investor. Founded in the wake of the 2008 financial crisis, we set out to provide the simplest, most profitable trading solutions, and have built a following among customers in over 80 countries worldwide. Today, we provide access to the financial markets via our online binary options platform to 250,000 account holders. As a World Finance listed company and multi award-winning firm, we are proud to be able to guarantee a safe and risk-controlled environment for all our valued clients.
HY Markets is a market leader in providing retail and institutional investors with access to foreign exchange and other capital markets. With HY Markets you can trade forex, metals such as gold and silver, energy products such as US oil and natural gas, commodities, indices as well as stocks, all from a single integrated account.
Ikon Markets are an online trading service provider affiliated to the Ikon Group, an acclaimed global network for online financial trading. Prior to the introduction of our online segment. We, at Ikon, have had many years of experience in providing financial trading services to institutional investors, such as banks, large financial institutions and mutual fund companies.