Diverse Data Drives Dollar Strength

Data wise, Switzerland GDP beat forecasts by coming in at 0.7% against expectations of no change. This is somewhat surprising given the strength of the CHF, and it will be interesting to see what future readings show. The CPI flash from the euro zone was also 2.4% y/y, which barely missed calls for 2.5%.

Canada's current account reading was -10.3B, which was slightly positive. The US ADP Non-Farm Payroll number was released (the precursor to tomorrow's more official and important level) at 383K, which was slightly more negative than expectations of 133K (exp. 145K). Unemployment Claims also missed, which hopefully does not forecast tomorrow's reading. Analysts are calling for 151K tomorrow.

As for USDCAD, it has certainly caught a bid, as risk is in the air and the USD is the currency of choice, but even with oil falling, the CAD has remained relatively strong, as there is much cross EURCAD selling, which is helping to support the Loonie. That being said, the interbank rate is hovering just below another significant resistance point, and if this should break, which looks likely, there could be another pop in the USDCAD pair.

Happy trading!