- Canada’s raw materials price index down by 4.0% in Nov
- Canadian industrial product price index down by 0.2%
- New Zealand GDT auction yielded 1.6% decline in dairy prices
- American Petroleum Institute crude oil inventories down by 5.6M barrels
- U.S. total vehicle sales fell from 18.2M to 17.3M
- Australian AIG services index down from 48.2 to 46.3
It looks like forex traders are in no mood to take on more risk these days! The safe-havens chalked up another winning day as hints of weaker inflation popped up on the data feed.
Canada’s leading inflation indicators – The recent slump in oil prices appears to be taking its toll on Canada’s numbers, as the country’s underlying inflation reports came in much weaker than expected. The raw material price index showed a 4.0% tumble in November versus the projected 2.3% decline while the industrial product price index printed a 0.2% drop instead of the estimated 0.1% uptick.
EUR selloff continuation – The shared currency already took a heavy beating in the previous trading session but its forex rivals kept the punches coming throughout the day. After all, the CPI estimates turned out weaker than expected and led some market watchers to price in more dovishness from the ECB down the line.
Major Currency Movers:
EUR – The euro didn’t even look back from its dive, as downbeat CPI estimates and a few negative revisions in growth forecasts weighed on the shared currency.
EUR/USD dipped to a low of 1.0707 before recovering to 1.0743, EUR/JPY broke below the 128.00 major psychological support and is trading at 127.73, EUR/GBP showed more downside momentum down to .7327, and EUR/AUD is trading below the 1.5000 handle once again.
CAD – The Canadian dollar surged to new lows against the U.S. dollar upon seeing weaker than expected inflation reports and getting dragged lower by falling oil prices.
USD/CAD broke past the 1.4000 major psychological mark and is at 1.4014, CAD/JPY fell below the 85.00 major psychological level and is down to 84.78, EUR/CAD is holding steady around the 1.5050 area, and GBP/CAD bounced off the 2.0450 area to 2.0558.
- 1:45 am GMT: Chinese Caixin services PMI (52.3 expected, 51.2 previous)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!