USD/CAD– US dollar surrenders gains after worse-than-expected Durable Goods report

on Aug 26, 2013
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**iNVEZZ.com, Monday 26 August:**

US Durable Goods for July indicated a slowdown in manufacturing, with a slump of 7.3 percent well below forecasts for a decline of 3.0 percent. The consensus range was from a fall of 7.2 percent to a rise of 1.4 percent and the actual release was short of even the most pessimistic expectations. The prior number was revised down to an increase of 3.9 percent from the initial estimate of 4.2 percent. This was the lowest reading since last August’s release.

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USD/CAD– Canada’s July Inflation Comes Softer than Expected Forex: Afternoon update: German Economy Grows Strongly

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Core Durable Goods, which exclude volatile aircraft orders, showed a drop of 0.6 percent, significantly short of the median economists’ consensus for a rise of 0.6 percent. The most negative expectations were for a decline of 0.5 percent and the actual reading disappointed all market observers hoping for the US economic momentum to persist.

Following the worse-than-forecasted US Durable Goods report, the USD/CAD retreated from the intraday high of 1.0534 and it is currently trading around 1.0512 and still marginally up for the day so far, by 0.12 percent.
The chart below is an update of Johan Gradin’s fractal analysis of the loonie (from the weekend), which anticipated the latest rally of the US dollar against its Canadian peer. However due to the congruent price structure of the USD/CAD with the end of January 2013, Gradin expects the currency to retreat from these highs to as low as 1.04 before resuming its uptrend.

!fm[](/uploads/story/5081/j.png)

So far the currency pair has repeated its source fractal from September to March once and Johan Gradin conjectures that USD/CAD is stuck in a continuation pattern.
!fm[](/uploads/story/5081/BNdFtHiCQAIHDOr.png)

At 15.30 BST today will be released the Dallas Fed Manufacturing Index, with expectations for a marginal improvement to 4.5 from the prior 4.4.

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USD/CAD– Canada’s July Inflation Comes Softer than Expected Forex: Afternoon update: German Economy Grows Strongly

FOLLOW our top traders or BET against them.
http://nvz.bz/19zgUvS

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