By FXEmpire.com
Analysis and Recommendations:
The USD/CAD in the morning session in the US, the Looney continues to fall against the USD, as there is a lack of support for the CAD and the USD has been picking up some of the lost strength from Friday’s session. The Dollar Index has moved close to 82.00 as investors are once again turning negative. After some time to evaluate the proposal by the EU Ministers and public comments by politicians and analysts this short term plan doesn’t seem to easy to put together. The selection of a bank supervisor will be a long drawn out process, which will have to be developed and approved by the EU nations.
Today, Norway blocked the use of the EFSF to fund bond purchased stopping one of the main goals of the new plan.
ISM manufacturing data was released in the US this morning disappointing analysts who had forecast a reading of 52.0 and the actual was 47.9 showing a huge slowdown. Also Chinese HSBC PMI reported early today, meeting forecast but the numbers still showed a continued slowdown with all the government efforts not offering any assistance at present.
Crude oil continues to give back its gains from Friday which is a negative for the Looney.
Trading will be light volume this week as US markets are closed for the holiday on Wednesday and many traders will take the long weekend, therefore positioning themselves ahead of the Nonfarm Payroll report due on Friday
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 date for July 2, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
July 2 |
JPY |
Tankan Large Manufacturers Index |
-1 |
-4 |
-4 |
|
CNY |
Chinese HSBC Manufacturing PMI |
48.20 |
48.10 |
||
|
CHF |
Retail Sales (YoY) |
6.2% |
5.0% |
0.2% |
|
|
CHF |
SVME PMI |
48.1 |
45.0 |
45.4 |
|
|
EUR |
French Manufacturing PMI |
45.2 |
45.3 |
45.3 |
|
|
EUR |
German Manufacturing PMI |
45.0 |
44.7 |
44.7 |
|
|
EUR |
Manufacturing PMI |
45.1 |
44.8 |
44.8 |
|
|
GBP |
Manufacturing PMI |
48.6 |
46.7 |
45.9 |
|
|
EUR |
Unemployment Rate |
11.1% |
11.1% |
11.0% |
|
|
USD |
ISM Manufacturing Index |
47.9 |
52.0 |
53.5 |
Upcoming Economic Events that affect the CAD and USD
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Jul 3 |
10:00am |
USD |
0.1% |
-0.6% |
|
|
Jul 5 |
8:15am |
USD |
101K |
133K |
|
|
8:30am |
USD |
385K |
386K |
||
|
10:00am |
USD |
53.1 |
53.7 |
||
|
11:00am |
USD |
-0.1M |
|||
|
Jul 6 |
8:30am |
CAD |
-0.7% |
-5.2% |
|
|
8:30am |
CAD |
5.2K |
7.7K |
||
|
8:30am |
CAD |
7.3% |
7.3% |
||
|
8:30am |
USD |
92K |
69K |
||
|
8:30am |
USD |
8.2% |
8.2% |
||
|
10:00am |
CAD |
55.1 |
60.5 |
Government Bond Auctions
Date Time Country
Jul 03 08:30 Holland
Jul 03 09:15 Austria
Jul 03 09:30 Belgium
Jul 03 09:30 UK
Jul 03 14:30 UK
Jul 04 09:30 UK
Jul 05 08:30 Spain
Jul 05 08:50 France
Jul 05 15:00 US
Click here for further USD/CAD Forecast.
Originally posted here
