Digesting today's data.

There has been a lot to digest today. And a lot of mixed messages.

Starting in the Asian session, poor data from Australia but positive PMI from China.

From the US we had soft ADP data (soft landing positive) but hotter than forecast SERVICE ISM data (higher for longer positive).

From Japan we have poor wage growth data (yen negative) but suggestions the BOJ will reduce purchases of JGB's (yen supportive).

The one consistent has been the BOC interest rate meeting, a rate cut and fairly dovish narrative (both CAD negative).

And all in all, a CAD short is currently the only potential trade on my radar. Most likely Vs the NZD or GBP.

But given it's approaching the end of the day and liquidity may drop, my gut feeling is that I don't have enough conviction to place a trade right now.

So, for now, I'm going to sit on my hands and assess the situation in the morning (of course we have the small matter of the ECB tomorrow).

Which means I must accept that if the CAD keeps weakening, it will look like I should have traded it.

Feel free to email any questions: johnelfedforexblog@gmail.com