By FXEmpire.com

Analysis and Recommendations:

The USD/CAD fell today to trade at 0.9813 as the greenback fell against most of its trading partners after a report showed that the U.S. economy slowed more than expected in the first quarter. Real gross domestic product rose at a 2.2% annualized rate in the first quarter, down from a 3.0% increase in the fourth quarter and below a forecast of 2.5%.

Many traders are beginning to wonder if the US is once again in the Spring Stall, which has happened for the past three years.

Economic Data for April 27, 2012 actual. v. forecast

JPY

Unemployment Rate

4.5%

4.5%

4.5%

JPY

Tokyo Core CPI (YoY)

-0.5%

-0.4%

-0.3%

JPY

Industrial Production (MoM)

1.0%

2.4%

-1.6%

JPY

Retail Sales (YoY)

10.3%

9.8%

3.4%

JPY

Interest Rate Decision

0.10%

0.10%

0.10%

EUR

GfK German Consumer Climate

5.6

5.9

5.8

EUR

French Consumer Spending (MoM)

-2.9%

-1.9%

2.9%

CHF

KOF Leading Indicators

0.40

0.26

0.09

EUR

Italian 10-Year BTP Auction

5.84%

5.57%

USD

Employment Cost Index (QoQ)

0.4%

0.5%

0.5%

USD

GDP Price Index (QoQ)

1.5%

2.0%

0.8%

USD

GDP (QoQ)

2.2%

2.5%

3.0%

Economic Events for April 30, 2012 for the US Markets

08:30 CAD GDP 0.1%

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. Canada releases fresh GDP data on a monthly basis.

13:30 USD Core PCE Price Index 0.2% 0.1%

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.

14:45 USD Chicago PMI 61.8 62.2

The Chicago Purchasing Managers’ Index (PMI) determines the economic health of the manufacturing sector in Chicago region. A reading above 50 indicates expansion of the manufacturing sector; a reading below indicates contraction. The Chicago PMI can be of some help in forecasting the ISM manufacturing PMI.

Government Bond Auctions (this week)

May 01 09:30 UK Auctions 4.5% 2042 Conventional Gilt

May 02 09:10 Sweden Nominal bond auction

May 02 09:30 Portugal Eur 1.25-1.5bn new Nov 2012 & new May 2013 T-bills

May 02 13:00 3Y Notes on May 08, 10Y Notes on May 09 & 30Y Bonds on May 10

May 02 14:30 Sweden Details T-bill auction on May 09

May 03 08:30 Spain Bono auction

May 03 08:50 France OAT auction

Click here for further USD/CAD Forecast.

Originally posted here