By FXEmpire.com
Analysis and Recommendations:
The USD/CAD continues to tumble trading at 1.0307 as the USD gains momentum as markets continue in risk aversion mode. The dollar index is just under 83.00 which has been a large move when it was just at 81.00 after the FOMC release last week.
Developments over the last week were generally negative for interest rate expectations in Canada and by default CAD. Last week saw, oil prices fall below $80/barrel, a change to mortgage rules in Canada, weak retail sales and headline inflation falling to just 1.8%. However, there was essentially no change to the current pricing of interest rate expectations in Canada, with the market pricing in a 16% chance of a rate cut over the next 6 months, suggesting that markets have already priced in significant downside. The most significant downside risks for CAD are a decrease in either US or global growth or an escalation in the European crisis that drives volatility higher. Today there are no domestic releases and CAD is following along broader trends.
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.
Upcoming Economic Events that affect the CAD and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jun 26 |
13:00 |
USD |
-2.6% |
|
|
14:00 |
USD |
64.9 |
||
|
Jun 27 |
12:30 |
USD |
0.2% |
|
|
14:00 |
USD |
-5.5% |
||
|
14:30 |
USD |
|||
|
Jun 28 |
12:30 |
USD |
||
|
12:30 |
USD |
1.9% |
||
|
Jun 29 |
12:29 |
CAD |
0.1% |
|
|
12:30 |
CAD |
-2.0% |
||
|
12:30 |
USD |
0.1% |
||
|
12:30 |
USD |
0.3% |
||
|
13:45 |
USD |
52.7 |
||
|
13:55 |
USD |
74.1 |
Click here to read USD/CAD Technical Analysis.
Originally posted here
