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Slew of US Data to Close Out the Week

Published July 15, 2016
  • Overnight market action was mixed as the deadly attacks in the south of France affected sentiment 
  • China released key economic data last night which showed that the world's second largest economy is in pretty good shape after all 
  • Q2 GDP data came in above expectations, printing 6.7% compared with a 6.6% forecast
  • Retail Sales also grew at a faster pace than expected –  10.6% in June compared with a 10% forecast
  • Finally, Industrial Production expanded at a 6.2% pace versus 5.9% forecasted
  • The news is certainly welcome and points to the success of recent stimulative efforts by the Chinese government
  • The Loonie has enjoyed a couple of strong days since the neutral Bank of Canada decision on Wednesday and those gains could be extended this morning following a slew of data from the US
  • CPI, Retail Sales, Industrial Production and University of Michigan Consumer Sentiment are all expected to be released this morning by 10am ET
  • Canada will release Manufacturing Sales Data for June
  • USDCAD remains mired in sideways trade that has persisted since June, however the current market structure looks to favour USD bears with the next major levels of support coming in the low 1.2800's and then June low's in the upper 1.2600's
  • USD buyers will want to take note of this and prepare to take advantage should their cash flows be short USD in the weeks and months ahead  

Chart: USDCAD sideways consolidation continues, however short term trend may favour USD buyers.