As one would expect, on the disappointing ADP employment report, the US side of this dollar pair fell.
What was not really expected is that it fell less than 20 pips. On a miss this size, I would have expected more of a reaction from this pair. Also somewhat surprising was the price action after the release of the month-over-month GDP figures for Canada. The December figures were negatively adjusted from 0.6% to 0.5%; however, the expectation for January was 0.5% and the actual came in at an impressive 0.6%. This showed an expansion at the fastest rate in three years and was the fifth straight gain for Canadian GDP. The surprise comes in that on what was seemingly pretty CAD positive news actually caused the Loonie to sell-off. Hmmm, I may have to think about this one a little more to find the reason. Yet to come today, and which can always have a dramatic impact on this pair, is the release of the Energy Information Administration’s Crude Oil Inventories report. With the close tie the CAD shares with Oil from the perspective of price movement, this will definitely be one to watch.