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positive Ivey report
Now the positive Ivey report is out I would have expected the pair to drop, the CAD to strengthen, but all we got was:
"[USD/CAD] dropped around 35 points in response to the much stronger than expected Canadian IVEY PMI data, which came in at 56.2 vs 45.9 in Dec and against the 47.0 expected reading. The pair had been hovering around 1.0150 pre-release, but the initial reaction to sell may be a short-lived moved as players consider the fact that some correction had been due after last months dire reading. Buying dips ahead of parity should emerge as stocks dip once again into the red as financials head lower. The pair should find technical support at 1.0010. "
The report said: "[CANADA JAN IVEY PMI] rose to 56.2 from 45.9 in Dec. This is well above the consensus forecast of 47.0, but it is not surprising. The index is not seasonally adjusted. It has fallen below 50 in the past 2 Decs and risen to the mid-50s in Jan. This Jan is just a continuation of that pattern and says little about the economy. Employment rose to 52.8 from 48. Inventories increased to 50.7 from 42.9. Deliveries rose to 45.2 from 39, while prices jumped to 67.1 from 60.1."
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