USD/CAD - GDP Static in July

The Canadian dollar remains rangebound between 80 and 0.80. 50 cents heading into the last day of the quarter. July monthly Gross Domestic Product carried expectations of 0.1% but remained flat; the big takeaway is GDP y/y missing expectations of 3.9% cited at 3.8%. The previous GDP annualized was at 4.4%, and a data-dependent Bank of Canada raised rates after last month’s reading. A miss this month may have the BOC sit on its hands at the next policy meeting in October.

Personal Spending figures for the U.S. showed PCE Core Price Index missed expectations at 1.4% and posted at 1.3%. Chicago Purchasing Managers Index will follow this data at 9:45 a.m. then Michigan Consumer Sentiment will survey on consumer confidence at 10 a.m., which is forecast at 88.3 while previous was 83.4. Heading into the last day of the quarter, investors see commodities lower with WTI Crude Oil down 0.19% at $51.46 U.S. per barrel and gold lower at $1,286.60 per ounce. The U.S. dollar index on the month is higher from a low of 91.13 to a high of 93.66 and a current level of 93.03 and opened the month of September at 92.60.

Experts expect a range today of $1.2439 to $1.2534

German Retail Sales in July missed the mark, releasing at -1.4% m/m and 0.7% y/y when expectations were for 0.1% m/m and 1.5% y/y. Euro-zone fundamentals were mainly as expected with unemployment rate releasing in line at 11.5% and inflation doing fairly well printing in line at 0.3% on the headline and above expectations at 0.9% on core. Italy’s economic data were mixed with unemployment rate printing higher than expected at 12.6% and GDP printed above expectations at -0.2%. Overall, the euro is firmer and currently trading at $1.4739.

Prognosticators expect a range today of $1.4708 to 1.4791

The UK economy reported a wider deficit than expected and released at -23.2 billion when expectations were for -15.8 billion. Nationwide House Price Index printed better than expected at 11.0% y/y and 0.8% m/m while GDP released in line at 0.3%. The pound sterling is flat and currently trading at $1.6697.

Traders expect a range today of $1.6654 to $1.6760

The Australian dollar continues to trade soft on the back of lower iron ore prices. Weaker oil prices and equities also negatively affected the Aussie and kept it trading lower during the overnight trading session. Main event risk will be next week’s rate announcement from the Reserve Bank of Australia on Monday night at 11:30 p.m. EDT. The market is expecting the central bank to hold policy unchanged and keep rates at 1.5%.

Oil (WTI): $51.35 U.S. per barrel

Gold: $1,285.11 U.S. per ounce

Silver: $16.78 U.S. per ounce

Copper: $2.9637 U.S. per tonne

Dollar Index: 93.19

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