Canadian Dollar Fails to Move as Employment Conditions Improve

[DailyFx]

Fundamental Headlines

• Dell Plans to Sell Factories In Efforts to Cut Costs – Wall Street Journal
• GE will Sell Warranty Business to Assurant – Wall Street Journal
• Banks Reel as ECB Redraws Funding Rules – Financial Times
• Russian Stocks, Bonds Tumble as Central Bank Props Up Ruble – Bloomberg
• Bank of America Seeks to Settle Auction-Rate Accords – Bloomberg

• EURUSD – German industrial production fell more than expected, sliding to -0.6 from a revised reading of 1.5% in June. Production activity declined as durable good orders dropped 6.5% followed by a 3.7% drop in capital goods. The economy outlook for the Euro-Zone has clearly deteriorated, and conditions may only get worse as the global economy weaken. For more news and resources, visit our EUR/USD Forum.

• USDCAD – Canadian employment rose more than expected, surging to 15.2K from -55.2K in July. The bigger than expect gain was led by a 16.1% increase in full time positions. A deeper look into the report showed that manufacturing employment rose 13.8K, while part time jobs improved to -0.9% from -48.1%. Meanwhile, the unemployment rate crossed the wires better than expected as it held steady at 6.1% for the second consecutive month. Discuss the topic and your trade ideas in the USD/CAD Forum.

• USDJPY – Japanese business investments plunged to -6.5% from -4.9% in the first quarter as firms grappled with higher input costs amid fading demands. The release failed to meet expectations for an improved reading of 0.9%, stoking growth fears for the world’s second largest economy. Capital spending excluding software fell for the fifth consecutive month, slipping to -7.6% in the second quarter. Economic activity has certainly deteriorated over the past few months, and conditions may only get worse as the global economy continues to cool. For more news and resources, visit the new Japanese Yen Currency Room.

To contact the author of this article, please email: dsong@fxcm.com

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