Daily Commentary

USD/CAD– The pair continuing to fall, I should imagine it will make it down to the 1.080 mark before all the data we have coming out at 1:30. We have various CAD data coming out such at GDP, IPPI and RMPI all out at 1:30, along with US data such as core PCE price index, personal spending and more later on during the session along with FOMC member Pianalto speaking. I assume the market will take a breather until this point and then we will begin to see some movement.

GBP/USD– After such a heavy weight on cables shoulders dragging it down to session lows, we can see it is starting to begin its climb back to the upside, most likely due to oversold conditions. With some congestion at 1.669, it stalled around here and this is where it began to turn around. With consumer confidence at 0, this is something that wouldn’t have affected it so much. With UKIP topping the poles in the south of England, these are all things that would have accounted for the move.

EUR/USD– Still dropping, we have seen the first substantial pull back on the upside in a while, although with German retail sales down at 0.9% from 0.1% at an expected 0.4% (MoM) its not looking too good. Italian CPI coming out at an expected -0.1%. As I said earlier we have lots of US data coming out later and I can safely say some movement will be present, although with it being Friday are people going to be more inclined to be selling before the weekend?

USD/JPY– Yen data out earlier, household spending down at a poor -4.6% from a previously impressive 7.2%, which may account for a small move on the upside. Tokyo CPI at 3.2% from 1.3%, this is good news but is it good enough to push the pair down? Stuck in a range of 104.2 and 100.7, it seems to be edging towards the lower side, a break on the downside it more than likely to happen.

GOLD- Slowly edging toward the downside, gold continues to plunge, dropping more than 400 pips in 3 days, this is a great sign that the trouble in Ukraine is easing if people are sure enough that they are beginning to sell gold. At the current level of 1253, some previous congestion that occurred back in October may cause gold to stall and potentially turn around on the upside due to oversold conditions.