The Chicago Business Barometer held on to most of July’s gain, falling just a fraction to 54.4 in August from 54.7 in July.
Morgan Stanley : expects the Fed to raise interest rates in December 2015 while the Bank of England is expected to raise interest rates in February 2016.
OPEC Bulletin: 2016 oil demand “is expected to be favorable crude oil prices.”
Ahead of the Canada GDP the loonie is trading higher at today’s Asia’s session. Besides, ISM manufacturing PMI due from U.S.
Economists expecting an uptick from the Canada GDP and an uptick from US data as well. In June, the ISM manufacturing PMI printed lower than expected of 52.7.
Technical view: The pair fell below the 20Dsma at yesterday’s session but managed to close above that. Today at Asia’s session again fell below the same, but manage to hold the previous day low.
The hourly oscillators indicating mild positive divergence favors pull back ahead of the major data. The intraday resistance seems at 1.3170, 1.3200 and 1.3250. Support finds at 1.3120, 1.3090 and 1.3050.
Buying trade available above 1.3170 targets at 1.3200 and 1.3220. the real buying momentum backs above 1.3240 towards 1.3300 and 1.3320.
On the downside, the strong support zone remains between 1.3090, 1.3050 and 1.3020. In case if the Canada’s GDP prints positive reading or if the ISM data print on the negative side the pair likely to re-test 1.3050 or 1.3020.
Selling trade available below 1.3130 targets at 1.3100 and 1.3050. Strong selling emerges only below 1.3090.