- U.S. Housing Starts: 1.07M vs. 0.98M forecast, 0.95M previous
- U.S. Building Permits: 1.08M vs. 1.01M forecast, 1.0M previous
- Canadian Foreign Securities Purchases: -C$1.23B vs. C$7.21B forecast, C$6.10B previous
- University of Michigan Sentiment Index: 81.8 vs. 84.5 forecast, 84.1 previous
U.S. data was a sentiment scratch as we got better-than-expected housing data early in the session, but a weaker-than-expected UoM consumer sentiment number a few hours later. From Canada, we got data showing that foreign investors reduce their holdings of Canadian assets in March. But it looks like economic data wasn’t much of a factor in currency price action as the Loonie (and comdolls) saw strength after the data release, indicating that the forex market was mainly trading along with broad risk sentiment. Loonie pairs closed near their session lows: USD/CAD closed down -0.14% to 1.0855 , EUR/CAD closed down -0.32% to 1.4866, and CAD/JPY closed up 0.12% to 93.40
We also saw euro and Swiss Franc continue their declines through the U.S session on speculation we may see monetary policy action from both the ECB and SNB in June. EUR/USD closed down -0.18% to 1.3692 and USD/CHF closed up 0.25% at .8916
We already got today’s Asia session economic reports in the form of New Zealand PPI data Japanese Key Machinery orders, both coming in better-than-expected on the economic calendar. The initial reactions seem to support positive risk sentiment, but with the Asia session just getting started, we’ll just have to see how it plays out as traders slowly come back from the weekend.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!