A Weak GDP Report Sends the Canadian Dollar Above the 1.24 Pivot

(This is an excerpt from an article I originally published on Seeking Alpha on June 8, 2015. Click here to read the entire piece.)

Statistics Canada released its monthly GDP report for April as time counted down on Greece’s June 30th debt deadline. While the news from the report could not steal headlines, it was significant enough to push the Canadian dollar (FXC) through the now important 1.24 pivot versus the U.S. dollar. {snip}


The April GDP report immediately brought sellers to the Canadian dollar
The April GDP report immediately brought sellers to the Canadian dollar

The April GDP report pushed USD/CAD right through the 1.24 pivot. While resistance remains around the 1.256 level, the 50-day moving average is now turning upward and supporting the current upswing.
The April GDP report pushed USD/CAD right through the 1.24 pivot. While resistance remains around the 1.256 level, the 50-day moving average is now turning upward and supporting the current upswing.

Source: FreeStockCharts.com

The 0.1% decline in April’s GDP was the fourth consecutive monthly decline. This included a fourth consecutive monthly decline for manufacturing output. While the Bank of Canada anticipated a weak first half of the year, traders clearly found no solace in more confirmation of the Bank’s expectations. {snip}


Is oil and gas extractions set for a rebound off 2014 lows or is there just plenty of room left to fall?
Is oil and gas extractions set for a rebound off 2014 lows or is there just plenty of room left to fall?

Source: Statistics Canada

The service sector remains a bright spot for GDP. {snip}

I remain committed to the bullish position on the Canadian dollar as I have explained in earlier posts. This is the one currency on which I try to take a longer view (whether it is bearish or bullish). {snip}

Be careful out there!

Full disclosure: short USD/CAD

(This is an excerpt from an article I originally published on Seeking Alpha on June 8, 2015. Click here to read the entire piece.)

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