May 21 2015: The GBP is strongest. The CAD is the weakest
As North American traders enter for the trading day, the GBP is strongest currency, while the CAD is a weakest.
The GBP benefited from better-than-expected retail sales for the month of April. The headline number increased by 1.2% vs. March. This was higher than the 0.4% expected. Taking out fuel, the rise of 1.2% was also much better than the expected 0.2% gain.
The CAD is the weakest currency today. In general the commodity currencies are lower in trading today. Typically, it might take a decline in oil to get the CAD moving lower. Not today. Crude and Brent oil are each up about 1%. Technically, the price of the USDCAD tested a support/old resistance level ( see hourly chart below) and could not extend below. The last few hours have seen a sharp rebound. Sometimes it might be the chart that is the main catalyst ; ) (PS most of the decline in the CAD was from the benefit of the stronger GBP too as GBPCAD is up 1.03% on the day).
Some key events and releases:
Chicago fed national activity index will be released with expectations of 0.0 vs. -0.42 (8:30 AM ET).
Initial jobless claims will be released with expectations of 270K vs. 264K. Continuing claims expected 2231K vs. 2229K (8:30 AM ET).
Market US manufacturing PMI for may expected 54.5 vs. 54.1 last month. (9:45 AM ET)
Philadelphia fed business Outlook index for May expected 8.0 vs. 7.5. (10 AM ET)
Existing home sales for April expected 5.23 M vs. 5.19 M ()10 AM ET)
Leading index for April expected 0.3% vs. +0.2% last month (10 AM ET)
ECB Draghi and Fed Vice Chair Fischer speak 1:30 PM ET
Fed vice chair Fischer speaks in easily conference at 2 PM ET.
Feds Williams speaks at 7 PM ET.
