By FXEmpire.com
Analysis and Recommendations:
The USD/CAD slid right through parity to trade at 0.9970. With little eco data from the US this week, and a strong building permit report from Canada, the USD continued to weaken. The greenback has been declining since the positive jobs report on Friday.
Also markets are beginning to convince themselves that the Fed will begin a program of QE at its September 13th meeting. It’s a bit faraway for those worries but they seem to be the lead in eco news this week. Yesterday, Fed Chairman gave a speech on economics, but did touch on QE, on an economic basis, not a do we or don’t we in September basis, but markets took his words as positive.
In the long term traders can expect China to undergo a soft landing, the US to enter another round of QE, the BoC to maintain its hawkish bias and for Canadian domestic data to hold up reasonably well; together this should help to support a strong CAD.
This week’s eco data from China will be very important to global markets, especially commodity related currencies. On Thursday and Friday, China will be releasing an entire range of data for the month of July.
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 7, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Aug. 07 |
AUD |
Interest Rate Decision |
3.50% |
3.50% |
3.50% |
|
AUD |
RBA Rate Statement |
||||
|
CHF |
Unemployment Rate |
2.9% |
2.9% |
2.9% |
|
|
CHF |
CPI (MoM) |
-0.5% |
-0.6% |
-0.3% |
|
|
GBP |
Industrial Production (MoM) |
-2.5% |
-3.4% |
1.0% |
|
|
GBP |
Manufacturing Production (MoM) |
-2.9% |
-4.1% |
1.2% |
|
|
GBP |
Industrial Production (YoY) |
-4.3% |
-5.0% |
-1.8% |
|
|
EUR |
German Factory Orders (MoM) |
-1.7% |
-1.0% |
0.7% |
|
|
CAD |
Building Permits (MoM) |
-2.5% |
-4.0% |
7.1% |
Upcoming Economic Events that affect the CAD and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Aug 8 |
12:30 |
USD |
-0.9% |
|
|
12:30 |
USD |
1.3% |
||
|
14:30 |
USD |
|||
|
Aug 9 |
12:15 |
CAD |
223K |
|
|
12:30 |
CAD |
-0.8B |
||
|
12:30 |
CAD |
0.3% |
||
|
12:30 |
USD |
-48.7B |
||
|
12:30 |
USD |
|||
|
Aug 10 |
12:30 |
CAD |
7.3K |
|
|
12:30 |
CAD |
7.2% |
||
|
12:30 |
USD |
-2.7% |
||
|
18:00 |
USD |
-59.7B |
Government Bond Auctions
Date Time Country
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
Click here for updated USD/CAD News.
Originally posted here
