Unexpected Canadian Economy Dropdown - 31.10.2012
During European trading session risky assets’ purchasing continued, due to successful quarterly reports from manufacturing giants like Lufthansa and Total and also due to significant growth in German Retail Sales. At the current moment German DAX Futures rises by 0,5%, EUR/USD gains 0,35%, trading at 1.3000. Growth in S&P 500 futures exceeds 0,4%. American stock market will be opened today after two days break that will increase the volatility and trading volumes.
Central macro statistics regarding Canadian GDP for August disappointed investors: index decreased by 0,1%, fixing first monthly dropdown since February. The market consensus was 0,2%. Obviously, the divergence like this lead to drop in CAD vs. US dollar. The pair currently tries to hand over the parity level. In terms of wave analysis, we observe the 5-waves impulse conclusion, started on October 24th. In this case, the target is within 1.0030-1.0050
USD/CAD, 4-hours chart