USD vs CAD - Daily Candle Chart 7th July 2009
The usd vs cad, much like Sleeping Beauty, is waiting for Prince Charming to awaken it from its slumbers as once again we suffered another day of indecision and sideways consolidation. Today sees the release of two important pieces of fundamental news on the economic calendar for Canada, the first of which is due up shortly, namely the Building Permits Data which measures the change in the total value of new building permits issued and therefore provides an excellent gauge future construction activity which may also provide a picture of the broader economy. If the actual is better than forecast then this is generally good for the Loonie. The forecast for this afternoon is a figure of 0.8%, dramatically better than last month’s of -5.4%. This is followed later in the trading session by the IVEY PMI Report, one of the most important diffusion Canadian indices released by the Richard Ivey School of Business, and based on a survey of purchasing managers. This too is considered a leading indicator and the forecast for today is significant as it peeps over the 50 threshold representing a tipping point from an economy in contraction, to one in expansion. It will be interesting to see whether either of these forecasts is met and if they are both exceeded then this should good news for the Canadian Dollar. With no fundamental on the US calendar the effect of this data may be more pronounced.
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