Article Highlights

  • Canadian Ivey PMI disappoints at 46.3 vs. 55.0 expected
  • Canadian trade balance weaker than expected at -0.9 billion CAD
  • U.S. trade balance stronger than expected, upward revision in previous figure
  • BOC Governor Poloz expressed concerns on inflation
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Price action among major currency pairs was mostly quiet for the U.S. session, with the exception of USD/CAD. The Loonie suffered a triple-whammy, as both Ivey PMI and trade balance data fell short of expectations while BOC Governor Poloz had downbeat remarks. The Ivey PMI slipped from 53.7 to a record-low of 46.3, reflecting a sharp contraction in the industry. Meanwhile, the trade deficit stayed at 0.9 billion CAD instead of improving to 0.2 billion CAD. Lastly, BOC Governor Poloz said that he is starting to get concerned about the prospect of disinflation in the Canadian economy.

As for the U.S. economy, the trade balance came in much better than expected at a deficit of 34.3 billion USD instead of the projected 40.2 billion USD shortfall. Aside from that, the previous month’s figure was revised from a 40.6 billion USD deficit to just 39.3 billion USD.

There are no major reports up for release in today’s Asian trading session, leaving market sentiment to dictate where major currency pairs could be headed. Keep tabs on the performance of Asian equity markets, as the Nikkei could hint at how yen pairs could fare.

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