The Canadian dollar rebounded on Friday after Canada’s November gross domestic product was higher than expected, rising 0.7% m / m compared to a 0.4% rise. In the news, the USD / CAD fell from $ 1.2850 to $ 1.2740. However, as a result, Canada’s economy is still 3% lower than the pre-pandemic level that eased the USD / CAD sales motivation.
Overall, this is a strong report, suggesting that the domestic economy is more resilient than previously thought. However, a shortage of vaccines for the domestic market means that the economic recovery can easily derail.
The global equity market has begun a new month with a solid foundation. The Asian stock index closed with a rise, and the European stock exchange recorded a solid rise, driven by the German Dax, which rose 1.5%. S & P 500 futures show a positive opening on Wall Street. Oil and gold prices have risen about 0.90% since the closing price on Friday.
Silver traders entertained the market overnight. Silver (XAG / USD) surged 10%, with some analysts suggesting a “GameStop” move directed by retailers. Others have dismissed the view because the silver market is much deeper and more difficult to operate than GameStop.
The US dollar opened up against the G-10 majors, with the exception of the British pound, which managed to rise.
The EUR / USD pair traded sideways, with a negative bias in Asia, but fell from $ 1.2141 to $ 1.2071 in early New York trading. Traders sought a $ 1.2110 retest, ignoring the Eurozone Manufacturing Purchasing Managers Index and slight improvements in jobs, preferring to focus on bearish short-term technical less than $ 1.2150. Italian politics is also negative as politicians are trying to form another coalition government and find a common ground enough to avoid elections. Emotions are also negative after “oral currency intervention” from many European Central Bank officials.
The GBP / USD pair outperformed the other G-10 majors with prices rising from $ 1.3696 to $ 1.3757. But the rally didn’t last, and the price fell to $ 1.3705 in New York. The currency has partially outperformed as the UK has won the competition for COVID-19 vaccination. Prices were supported by higher than January manufacturing PMI expectations, which were 54.1 compared to previous estimates of 52.9.
AUD / USD and NZD / USD are trading in the middle of the overnight range after the EUR / USD retreat has paused. AUDUSD traders are looking forward to the Reserve Bank of Australia’s Monetary Policy Conference on Tuesday. Analysts expect authorities to provide a bright outlook.
The deadline for manufacturing data from the American Supply Management Association is today.
Rahim Madhavji is the president of KnightsbridgeFX.com, the Canadian currency exchange, and offers Canadians better rates than banks.
Baystreet.ca-USD / CAD-Canadian dollar still shines in GDP
http://www.baystreet.ca/articles/forex_trader.aspx?articleid=63939 Baystreet.ca-USD / CAD-Canadian dollar still shines in GDP