Forex Flash: Canadian PMI should pick up – Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that Canada releases the Ivey PMI for January this afternoon and the reading should pick up in line with the rise in the US index, and this may help the CAD at the margin.

Juckes feels that the USD ignores decent economic data, just as the market ignores the comments of the Dallas Fed’s Richard Fisher and the Philadelphia Fed’s Charles Plosser. He writes, “Both want a debate about earlier exit from extraordinary fed policy, which would signal an upturn for the dollar. Neither is being heard. Today’s US data won’t advance that debate at all. Sell AUD/CAD on the grounds that this helps the CAD, but the AUD simply can’t find a bid?”