By FX Empire.com
Economic Events: (GMT)
13:30 USD Core PCE Price Index (MoM)
13:30 USD Personal Spending (MoM)
The Core Personal Consumption spending (PCE) Price Index measures the changes in the price of goods and services purchased by consumers for the purpose of consumption, excluding food and energy. Prices are weighted according to total expenditure per item. It measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
Personal Spending measures the change in the inflation-adjusted value of all spending by consumers. Consumer spending accounts for a majority of overall economic activity. However, this report tends to have a mild impact, as government data on retail sales is released about two weeks earlier.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
USD/CAD Fundamental Analysis Jan. 30, 2012, Forecast
Analysis and Recommendations:
The USD/CAD is currently trading 1.0012 -0.0005 (-0.05%)
The USD has continued to fall ever since the Federal Reserve statements earlier this week in regards to maintaining current low interest rates through 2014. Fed Chairman, Ben Bernanke made statements, indicating that that Fed will step in with additional support if jobs or growth slow.
In the past few days, US economic reports have cast doubts, over the US turn around. The unemployment report this week showed higher unemployment and the housing report came in way under forecast. The durable goods report was the shining spot, which exceeded expectation. This report is important as it shows increased manufacturing which stimulates the economy, adds growth, and jobs, which inturn will help housing.
According to economists, Canada’s Central Bank may not follow the Federal Reserve’s “proactive” approach in monetary policy. This could make the CAD attractive.
Crude Oil is hanging close to the 100.00 level, helping to keep the CAD strong. The two will move in unison as the EUR/USD.
Over the weekend, there should be news of a settlement with Greek creditors, but the flood gates might open in Portugal.
There is no economic data due in Canada through Monday. Reports released on Friday in the US gave a small boost the USD.
Scheduled Sovereign Bond Sales
Jan 30 10:10 Italy BTP/CCTeu auction
Jan 30 10:10 Norway Nok 4.0bn 5.0% May 2015 bond
Jan 30 11:00 Belgium OLO Auction
Jan 30 12:00 Norway Details bond auction on Feb 06
Jan 31 10:30 Belgium Auctions 3 & 6M T-bills
Jan 31 15:30 UK Details gilt auction on Feb 07
Feb 01 10:10 Sweden Auctions T-bills
Feb 01 10:30 Germany Eur 5.0bn 2.0% Jan 2022 Bund
Feb 01 10:30 Portugal Eur 0.75-1.0bn 3M T-bill
Feb 01 10.30 UK Auctions 5.0% 2025 conventional Gilt
Feb 01 15:30 Sweden Details nominal bond auction on Feb 08
Feb 01 16:00 US
Announces details of 3Y Notes on Feb 07, 10Y Notes on Feb
08 & 30Y Bonds on Feb 09
Feb 02 09:50 France OAT Auction
Feb 02 10.30 UK Auctions 0.125% 2029
Originally posted here
