USD to CAD - Daily Candle Chart 5th February 2009

USD to CAD - Daily Candle Chart 5th February 2009

Surprise, surprise, the pair moved sideways again yesterday, just for a change!!! Until the situation changes and we see a clear trading signal, with a breakout from the current sideways trend, the I suggest you look elsewhere for more profitable trades, and ones with a much better chance of success.

There are two key announcement out later today in Canada, first with the Building Permits, and secondly with the IVEY PMI data. As the name suggest the Building Permits measures the number of new permits issued for building in the last month, and therefore provides a leading indicator of future economic activity in a variety of markets. The forecast this time round is for -5.0% against a previous of -11.8% and if the actual is better than forecast then this is generally good for the home currency, in this case the Canadian dollar. The IVEY PMI data is released 2 hours later, and provides a view from the Richard Ivey School of Business on the economic health of the country. The report surveys 175 purchasing managers and ask respondents to rate the relative level of business conditions covering employment, production, new orders, suppliers and prices, along with stocks of goods. As with many other indicators of this type a figure above 50 indicates an economy in expansion and below 50 one in contraction. In the current environment, all these figures are relative ( IE just bad or awful!) – the forecast is for 39.2 against a previous of 39.1. If the actual is better than forecast then this is generally good for the home currency. The main news out in the US later is the Unemployment Claims, and more details can be found on the pounds to dollars site.

The short, medium and long term is sideways!!