By FXEmpire.com
Analysis and Recommendations:
The USD/CAD is trading at 1.0145 in early trading. The BoC has already completed its reversal from the awkwardly timed hawkish April stance which itself was a reversal from the strongly dovish stance that the BoC had adopted since the fall of last year. One thing we’ll be watching is the math on the BoC’s output gap for which we need its quarterly Canadian GDP projections to be released today. CAD has retraced some of yesterday’s strength and is moving into the open down -0.1% since yesterday’s close. Most of the details were in yesterday’s statement; accordingly market surprise to today’s MPR is likely to be low. All in all, the BoC scaled back on its hawkish tone, but left itself as the most hawkish of the advanced economies’ central banks, which in the medium term is a CAD.
The USD remains weak, as Fed Chairman Bernanke continues to testify before Congress, but no new information is expected. This evening the Fed will release the Beige Book report.
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 19, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul. 18 |
JPY |
Monetary Policy Meeting Minutes |
|||
|
GBP |
Average Earnings Index +Bonus |
1.5% |
1.4% |
1.4% |
|
|
GBP |
Claimant Count Change |
6.1K |
5.0K |
6.9K |
|
|
GBP |
MPC Meeting Minutes |
||||
|
USD |
Building Permits |
0.755M |
0.765M |
0.784M |
|
|
USD |
Housing Starts |
0.760M |
0.745M |
0.711M |
|
|
USD |
Fed Chairman Bernanke Testifies |
Upcoming Economic Events that affect the CAD and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jul 19 |
12:30 |
CAD |
1.5% |
|
|
12:30 |
USD |
|||
|
14:00 |
USD |
4.55M |
||
|
14:00 |
USD |
-16.6 |
||
|
Jul 20 |
12:30 |
CAD |
-0.1% |
Government Bond Auctions
Date Time Country
Jul 19 00:30 Japan
Jul 19 08:30 Spain
Jul 19 08:50 France
Jul 19 09:30 UK
Jul 19 09:50 France
Jul 19 15:00 US
Jul 19 17:00 US
Jul 23- n/a UK
Jul 23 09:30 Germany
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 for further USD/CAD Forecast.
Originally posted here
