USDCAD retreats from 11 year high


24 December, AtoZForex.com, Lagos – The USDCAD, which has been one of our major focus lately, now looks set for declines as the pair is exhausted from a long rally, hitting 11 year highs. Canada’s retail sales and Gross Domestic Product (GDP) figures both came flat at 0.0%, both beating previous month’s releases of -0.4% and -0.5% respectively. On the other hand, the US core Durable Goods Orders a -0.1% change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items.

The weak US data and the somewhat flat Canadian reports helped push the USDCAD pair further down, having been showing signs of exhaustion after an extended bullish run.

UK current account

According to data released by the Office of National Statistics yesterday, the UK current account deficit was £17.5 billion in Quarter 3 (July to September) 2015, unchanged from a revised deficit of £17.5 billion in Quarter 2 (April to June) 2015. The deficit in Quarter 3 (July to September) 2015 equated to 3.7% of gross domestic product (GDP) at current market prices, down from 3.8% in Quarter 2 (April to June) 2015. The total trade deficit widened to £8.7 billion in Quarter 3 (July to September) 2015, from £4.7 billion in Quarter 2 (April to June) 2015. This was primarily due to a £5.4 billion widening in the trade in goods deficit partially offset by a £1.4 billion widening in the trade in services surplus. The primary income deficit narrowed to £3.3 billion in Quarter 3 (July to September) 2015, from £6.6 billion in Quarter 2 (April to June) 2015. This was due in most part to a decrease in direct investment and portfolio investment payments. The Sterling remained mixed against its major counterparts yesterday, but the trend on the currency still looks bearish.

US Unemployment Claims

Being the only note worthy fundamental data on the calendar, it is forecast to show 270k individuals filed for unemployment insurance for the first time during the past week, almost same as the previous release.

A very slow day is expected as bank holidays are being observed across Europe, Australia and New Zealand in observance of Christmas Eve.

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