USDCAD continues to trade in well defined ran 2012.03.30

March 31, 2012 00:25

Canada real gross domestic product gained 0.1% in January 2012 following a 0.5% increase in December 2011, according to Statistics Canada reports on Friday. The manufacturing sector grew while oil and gas contracted. Moreover, manufacturing rose for the fifth consecutive month up 0.7% in January. Additionally, the finance & insurance, utilities, wholesale trade, public (health, education, etc.) and some tourism related sectors also posted increases. Yet, forestry & logging, arts, entertainment & recreation, and construction all reported decreases.

On the other hand, weekly individual income in the country rose 0.6% in January from the previous month to an average of $888.89. Compared to January the previous year, earnings increased 2.0%. This is largely due to wage growth as well as alterations in the composition of employment by industry, level of job experience and occupation. The year-over-year comparison for weekly wage increases grew at faster rates in the retail trade, construction, wholesale trade, public administration and manufacturing sectors than the national average rate of 2.0%.

In other news, United States (US) personal income increased 0.2% with real disposable personal income (DPI) lowering 0.1% in February 2012, according to US Department of Commerce reports on Friday. Yet, real personal consumption expenditure (PCE) grew 0.5% or $89.8 billion with purchases of motor vehicles and parts accounting for the majority of the increase. Prices for PCE excluding food and energy rose 0.1% in the month. Despite this, personal savings (DPI – PCE) lowered in February to $438.7 billion from January at $509.5 billion.

The USDCAD has continued ranging between 0.9900 and 0.9975 since March 12th and we expect this to continue creating opportunities for range traders. Given the phase of recovery in the Canadian and U.S. economy, we are still waiting for significant improvement for a breakout to happen.

Eugene Ross, Analyst

Admiral Markets

At any use of the analytical material taken from a site of company Admiral Markets, and the secondary publication on any other resources, the rights to intellectual property for a dealing center «Admiral Markets», the reference to a company site is obligatory.

Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.