Yesterday was a rather uneventful day considering the fireworks that were supposed to happen after Greece's historic NO vote. The euro pretty much shrugged it off. Stocks bounced off the lows. The only markets that really got whacked were crude oil and copper.
For me, it was a lot of watching. I watched the markets for 10 hours before I did anything. When I did, I traded the USD/CAD. The Ivey PMI data was more bullish than expected and the USD/CAD was running into resistance at 1.2660. I put on a short and caught the move.
The Loonie strengthened and gained 50 pips on the US dollar. However, as you can see, it didn't last long. The trend higher for the US dollar against the Canadian is indeed quite strong.
For today, my first focus is on UK manufacturing data. At 04:30 EDT we get Industrial and Manufacturing Production out of the UK. Expectations are for Industrial Production to come in at -0.2% month-over-month. Manufacturing Production is expected to show a month-over-month increase of 0.1%.
The at 08:30 EDT we get US and Canadian trade data. Expectations are for the US to post a deficit of $42.60 billion and Canada to post a deficit of $2.5 billion. What intrigues me about the Loonie is that everyone is short the Canadian. When one trade gets crowded, we could see a rush to the exits. I'll be watching this pair closely.
The final report of the day for me is UK GDP estimate at 10:00 EDT. The prior reading was 0.6%, so we'll see how this comes in today. I'll be watching the 1.5550 support zone on the GBP/USD.
As always, best of luck and happy trading!
