CANADIAN ECONOMY STALLS AFTER EIGHT MONTHS OF GROWTH
A survey published earlier today showed that UK consumer mood had improved slightly in September, as consumers became more optimistic about the nation’s economic condition. According to the survey, conducted by market researcher GFK UK Ltd, the long-running barometer of consumer confidence increased by one point in September and is now at -9. This improvement in sentiment is driven by growing confidence in the UK economy for the year and expectations about the year ahead as well.
Earlier in the day, data by the Federal Employment Agency showed that Germany jobless claims decline was much sharper than anticipated in September, the unemployment rate fell to 5.6% in September which is the lowest since the beginning of recording the data in 1992. Jobless claims fell by 23,000 in September as compared to August, these figures are adjusted for seasonal swings.
Recent data showed that Canadian economic output slowed in the second quarter after eight straight months of gains, and bringing to an end an exceptional run of fast economic growth. Gross domestic product is largely unchanged in July versus the previous month, expectation was for GDP growth of 0.1% in July.
Stephen Poloz, Bank of Canada Governor said earlier this week that recent economic indicators clearly indicate a slowdown in the pace of growth in the second quarter of 2017. He also mentioned that the central bank would be working from a clean slate on future rate policy decisions.
EUR/USD is expected to trade with a bullish outlook. The pair rebounded from 1.17163 (this week's low). The relative strength index is also mixed with bullish bias. The price also broke above the 50 day moving average. So, as long as the price is above 1.17163 (this week's low) look for further upside toward 1.18606 (last week's low) and 1.19360 (this week's low). Alternatively, below 1.17163 look for 1.1685 and 1.1661 (last month low).
USD/CAD is trading with a bullish outlook. The pair rebounded from 1.2415 (yesterday's low) and is trading around today's high at 1.2492. The relative strength index is heading upward and the 50 day moving average is turning bullish. As long as the price is above 1.2388 (last week's high) look for upside targets at 1.25187 (yesterday's high) and 1.2550. Alternatively, below 1.2388 look for 1.2345 and 1.2300.
USD/CHF is under pressure is under pressure below the key resistance at 0.9720 (today's high), which is expected to limit the upside potential. The relative strength index is also bearish below its neutrality area. As long as the price is below 0.9720 look for downside targets of 0.9650 and 0.9600. Alternatively, only a break above 0.9720 would call for 0.9747 (last week's high) and 0.9758 (yesterday's high).