By FXEmpire.com

Analysis and Recommendations:

The USD/CAD is trading at 0.9968 just below parity. CAD is flat to yesterday’s close, but has rallied an impressive 5% since its June 4th low. Working in CAD’s favor is low market volatility, the relative stance of the Bank of Canada, building belief that China will undergo a soft landing, Canada’s AAA sovereign rating and positive investor sentiment. These all give the CAD a bullish outlook.

Yesterday, Ivey PMI surprised higher coming in at 62.8; however the series is notably volatile

Canada will be pretty quiet with no major economic data releases scheduled for today leaving markets to turn their attention to the tide of corporate earnings announcements on the docket. 29 companies will announce earnings including a number of prominent mining companies.

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 8, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Aug. 08

JPY

Adjusted Current Account

0.77T

0.75T

0.28T

AUD

Home Loans (MoM)

1.3%

2.0%

-0.9%

CHF

SECO Consumer Climate

-17

-4

-8

GBP

BoE Inflation Report

EUR

German 10-Year Bund Auction

1.420%

1.310%

EUR

German Industrial Production (MoM)

-0.9%

-0.8%

1.7%

USD

Nonfarm Productivity (QoQ)

1.6%

1.3%

-0.5%

USD

Unit Labor Costs (QoQ)

1.7%

0.6%

5.6%

Upcoming Economic Events that affect the CAD and USD

Date

Time

Currency

Event

Previous

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 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