By FXEmpire.com
Analysis and Recommendations:
The USD/CAD traded at 1.0099 up .0027 as the USD steamrolls over the Looney. Positive data in the US outweighed the strong manufacturing sales report in Canada to push the dollar upwards.
Global sentiment remains risk avoidance.
The EU turmoil continues, even though Merkel and Hollande had their first meeting and Merkel seemed to change her tune a bit pushing “growth” but her power and time in office might be waning as she continues to lose support at home.
With the lack of leadership, the public outcry against harsh austerity and the continued economic disasters, investors are shedding anything that has to do with the EU.
This gives the USD great strength. Unfortunately we are at the same time witnessing a huge fundamental fall in oil prices as speculators have left the markets, and supply and demand are now back in control. This drop is a negative for Canada who is a major oil exporter to the US, not only are the prices dropping but oil supplies have increased significantly reducing demand also.
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 May 16, 2012 actual v. forecast
|
JPY |
Tertiary Industry Activity Index |
-0.6% |
-0.3% |
0.0% |
|
AUD |
Westpac Consumer Sentiment |
0.80% |
-1.60% |
|
|
AUD |
Wage Price Index (QoQ) |
0.9% |
0.8% |
1.0% |
|
GBP |
Average Earnings Index +Bonus |
0.6% |
1.0% |
1.1% |
|
GBP |
Claimant Count Change |
-13.7K |
5.0K |
-5.4K |
|
EUR |
CPI (YoY) |
2.6% |
2.6% |
2.6% |
|
EUR |
Core CPI (YoY) |
1.6% |
1.5% |
1.6% |
|
USD |
Building Permits |
0.715M |
0.730M |
0.769M |
|
USD |
Housing Starts |
0.717M |
0.680M |
0.699M |
|
Manufacturing Sales (MoM) |
1.90% |
1.00% |
-0.20% |
|
|
USD |
Industrial Production |
1.1% |
0.6% |
-0.6% |
Upcoming Economic Events that affect the CAD and USD
|
May 17 |
13:30 |
CAD |
9.34B |
12.50B |
|
|
13:30 |
USD |
365K |
367K |
||
|
13:30 |
CAD |
0.4% |
1.6% |
||
|
13:30 |
USD |
3235K |
3229K |
||
|
15:00 |
USD |
10.0 |
8.5 |
||
|
May 18 |
13:30 |
CAD |
0.3% |
0.3% |
|
|
13:30 |
CAD |
0.3% |
0.4% |
||
|
13:30 |
CAD |
2.0% |
1.9% |
Click here to read USD/CAD Technical Analysis.
Originally posted here
