By FXEmpire.com

Analysis and Recommendations:

The USD/CAD is trading at 1.0003 almost reaching parity today. The US nonfarm payroll report surprised traders, showing that the US created 163K new jobs, when only 100K were forecast, but the unemployment level increased unexpectedly to 8.3%, casting a shadow on the positive report.

The CAD is stronger, up 0.5% from yesterday’s close as it continues to trade within the relatively tight 82-pt range seen over the past five sessions. USDCAD continues to see congestion just above parity, and will require a catalyst to break through for further declines. In terms of data, next week’s housing starts and international merchandise trade are unlikely to drive declines in USDCAD.

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 August 2, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Aug. 03

TRY

Turkish CPI (MoM)

-0.23%

-0.10%

-0.90%

EUR

Retail Sales (MoM)

0.1%

-0.1%

0.8%

USD

Average Hourly Earnings (MoM)

0.1%

0.2%

0.3%

USD

Nonfarm Payrolls

163K

100K

64K

USD

Unemployment Rate

8.3%

8.2%

8.2%

USD

Average Weekly Hours

34.5

34.5

34.5

USD

Private Nonfarm Payrolls

172K

110K

73K

Upcoming Economic Events that affect the CAD and USD

Date

Time

Currency

Event

Previous

Aug 7

12:30

CAD

Building Permits m/m

7.4%

14:00

CAD

Ivey PMI

49.0

Aug 8

12:30

USD

Prelim Nonfarm Productivity q/q

-0.9%

12:30

USD

Prelim Unit Labor Costs q/q

1.3%

14:30

USD

Crude Oil Inventories

Aug 9

12:15

CAD

Housing Starts

223K

12:30

CAD

Trade Balance

-0.8B

12:30

CAD

NHPI m/m

0.3%

12:30

USD

Trade Balance

-48.7B

12:30

USD

Unemployment Claims

Aug 10

12:30

CAD

Employment Change

7.3K

12:30

CAD

Unemployment Rate

7.2%

12:30

USD

Import Prices m/m

-2.7%

18:00

USD

Federal Budget Balance

-59.7B

Government Bond Auctions

Date Time Country

Aug 06 09:10 Norway

Aug 07 00:30 Japan

Aug 07 09:15 Austria

Aug 07 14:30 UK

Aug 07 17:00 US

Aug 08 09:30 Germany

Aug 08 10:00 Norway

Aug 08 15:30 Italy

Aug 08 17:00 US

Aug 09 15:30 Italy

Aug 09 17:00 US

Aug 10 10:00 Belgium

Aug 13 09:10 Italy

Aug 13 09:10 Norway

Aug 13 09:30 Germany

Aug 14 09:10 Greece

Aug 14 09:10 Italy

Aug 14 09:30 Belgium

Aug 14 14:30 UK

Aug 15 09:10 Sweden

Click here for updated USD/CAD News.

Originally posted here