By FXEmpire.com
Analysis and Recommendations:
The USD/CAD is trading at 1.0197 against a very strong greenback. On the back of European induced risk aversion, CAD is weak in early US trading, having lost 0.3% since Friday’s close.
There is no Canadian data today, however Friday’s weak inflation data fails to incorporate the upward pressure that rising agricultural prices will put on inflation, something the BoC will be watching closely. On the M and A front, China’s CNOOC Ltd has made a US$17.7bn bid for Canada’s Nexen. The deal appears to be in USD, which will have limited CAD impact; however it highlights international interest in Canadian based assets, which has a medium term positive impact for CAD.
For USDCAD traders, the VIX and FX vol will be important measures to watch. Risk aversion is an important driver of USDCAD upside; any spike in volatility is likely to also cause a temporary spike in USDCAD. The sharp decline in crude oil is also putting pressure on the CAD.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Economic Data July 23, 2012 actual v. forecast
|
Date |
Time |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul. 23 |
01:30 |
TWD |
Taiwanese Unemployment Rate |
4.24% |
4.30% |
4.25% |
|
02:30 |
AUD |
PPI (QoQ) |
0.5% |
0.3% |
-0.3% |
|
|
10:30 |
EUR |
German 12-Month Bubill Auction |
-0.054% |
0.019% |
||
|
13:30 |
USD |
Chicago Fed National Activity |
-0.15 |
-0.48 |
Upcoming Economic Events that affect the CAD and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jul 24 |
12:30 |
CAD |
Core Retail Sales m/m |
-0.3% |
|
12:30 |
CAD |
Retail Sales m/m |
-0.5% |
|
|
13:00 |
USD |
Flash Manufacturing PMI |
52.5 |
|
|
Jul 25 |
14:00 |
USD |
New Home Sales |
369K |
|
14:30 |
USD |
Crude Oil Inventories |
||
|
Jul 26 |
12:30 |
USD |
Core Durable Goods Orders m/m |
0.7% |
|
12:30 |
USD |
Unemployment Claims |
||
|
14:00 |
USD |
Pending Home Sales m/m |
5.9% |
|
|
Jul 27 |
12:30 |
USD |
Advance GDP q/q |
1.9% |
|
13:55 |
USD |
Revised UoM Consumer Sentiment |
72.0 |
Government Bond Auctions
Date Time Country
Jul 24 08:30 Netherlands
Jul 24 08:30 Spain
Jul 24 15:30 Italy
Jul 24 17:00 US
Jul 25 09:30 Germany
Jul 25 15:30 Italy
Jul 25 17:00 US
Jul 26 00:30 Japan
Jul 26 09:10 Italy
Jul 27 09:10 Italy
Jul 27 17:00 US
Click here a current USD/CAD Chart.
Originally posted here
