- Canadian wholesale sales data released came in at 0.1%, compared to the forecast of -0.2%.
- Most major pairs were seen consolidating in a range, as the FX market was mostly quiet during the past two sessions.
- Japanese yen was one of the worst performers, as it declined substantially against the US dollar and other major currencies.
- Euro area current account data published today missed the forecast, and recorded a surplus of €18.9 billion.
- Euro was seen trading in a tight range against the US dollar, but the EURUSD pair lagged momentum for upside in the short term.
- EURCHF down again this week and heading towards the 1.2050 support area where it might find buyers.
Canadian Wholesale Sales
Earlier during the NY session, the Canadian wholesale sales report was published by the Statistics Canada. The market was expecting the Canadian wholesale sales to decline by 0.2% in August 2014, compared with the last month. However, the Canadian wholesale sales registered an increase of 0.2% to $53.1 billion in August. This was encouraging considering the market’s expectation. If we consider volume terms, then the wholesale sales edged up 0.1%. The report mentioned that the best performing sectors were machinery, equipment and supplies subsector, which registered a monster increase of 3.6% to a record high $11.3 billion. Another important point to note from the report was that the Inventories increased for an eighth consecutive month, jumping by 0.2% in August 2014.
We discussed about the USDCAD pair earlier today. The pair has continuously found support around the 1.1250 level, which is a bullish sign. There was again a positive news for the Canadian dollar, but buyers failed to capitalize on the same. On the upside, the 100 hourly moving average is a monster hurdle for the pair, which must be pierced for more gains.
Euro Area Current Account Data
The Euro area current account data was released by European Central Bank earlier during the Asian session. The market was expecting it to register a surplus of €21.3 billion in August 2014, compared to the last month. However, the outcome was mixed, as the Euro area seasonally adjusted current account registered a surplus of €18.9 billion, which was on the lower side compared with the expectations. However, the previous reading was revised up from €18.7 billion to €21.6 billion. Similarly, the Euro area non-seasonally adjusted current account registered a surplus of €15.1 billion, which was less than the expectation of €18.3 billion. The previous reading was way better than the current one, as it was also revised up from €32.3 billion to €32.8 billion.
The EURUSD pair is trading slightly higher Intraday after finding support around the 1.2730 level. The mentioned level might be tested again in the short term and if the Euro sellers manage to break it, then it would call for a move towards the 1.2700 support area. On the high side, the 1.2780 can be considered as an immediate hurdle for the EURUSD pair.
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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
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