USDCAD breaks out to 1.2700 on data releases


U.S. preliminary Q2 productivity grew at a 0.9% pace, better than forecast, versus a revised 0.1% clip in Q1 (was unchanged) and 1.3% in Q4 (revised from 1.8%). Unit labor costs rose at a 0.6% clip last quarter from 5.4% in Q1 (revised from 2.2%) and -6.3% in Q4 (revised from -4.6%). Q2 output came in at 3.4% versus Q1’s 1.8% (revised from 1.7%).

Compensation per hour grew at a 1.6% from 5.5% previously (revised from 2.2%), with real compensation growth at 1.9% from 2.3% (revised from -0.9%). The prices deflator was 0.6% from 0.9% in Q1 (revised from 1.4%). On an annual basis, productivity growth was steady at 1.2% y/y, the same as in Q1, and up from 0.8% y/y from Q4 (revised from 1.1% y/y).

The H1 chart now has 1.2700 as a key pivot today with the Oil inventories to come and heightened uncertainty swirling around following the ratcheting up of rhetoric between Washington and Pyongyang.

VIAStuart Cowell, HotForex

Stuart Cowell is the Senior Analyst at HotForex. He has over 25 years experience working with a host of globally recognized organizations in the City of London. He has been trading the global markets since 1997.