USDCAD Pares Losses After Weak Ivey PMI Data

USDCAD reversed into an uptrend after the Bank of Canada decided to maintain the Overnight Rate on hold at 0.50% but stated that second-quarter gross domestic product was affected by a drop in exports that was “larger and more broad-based than expected.”

Although in general, the central bank delivered an optimistic attitude towards its economy, analysts claimed that weak exports would demand the BOC unleash more monetary easing to drive stronger growth.

The Loonie today was also hit by the Canadian Ivey PMI. The indicator released by the Richard Ivey School of Business, decreased from 57.0 points to 52.3 points, missing consensus estimate of 55.5 and signaling an aggressively decelerated expansion.

Trade suggestion

Buy Stop at 1.29000, Take profit at 1.29250, Stop loss at 1.28840

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