By FXEmpire.com
Analysis and Recommendations:
The USD/CAD saw a stronger US dollar push upwards again today, trading at 1.0286 up 0.0017 in mid day trading.
With oil prices continuing to decay and no eco data from Canada, the pair is at the sentiment of the US. Spikes in risk aversion tend to prove temporary, typically measured in weeks not months. We are firm believers that the current downside pressure on CAD will continue as long as risk aversion remains high; but that this is an interruption and not a reversal in the strong CAD trend. As the Euro-crisis escalates traders have rapidly pared their bets for interest rate hikes by the BoC
The week has seen encouraging numbers from the U.S but the situation in Europe continue to weigh on investors. Next week could give a better indication of the U.S economic recuperation with the Nonfarm payrolls data scheduled for release. Also in line, next week is the U.S GDP figures; both heavyweight numbers could have a significant bearing on the currency and commodity prices. The recent string of weak numbers from China is raising fresh concerns about the pliability of the Chinese economy amid softening global demand and in that regards, policy easing from China could be on cards in the coming days.
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 for May 25, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
May 25 |
JPY |
Tokyo Core CPI (YoY) |
-0.8% |
-0.6% |
-0.5% |
|
EUR |
GfK German Consumer Climate |
5.7 |
5.6 |
5.7 |
|
|
CHF |
Employment Level |
4.05M |
4.02M |
4.04M |
|
|
PLN |
Polish Unemployment Rate |
12.90% |
12.80% |
13.30% |
|
|
MXN |
Mexican Unemployment Rate |
4.9% |
4.9% |
4.6% |
|
|
MXN |
Mexican Trade Balance |
0.560B |
1.000B |
1.575B |
Upcoming Economic Events that affect the CAD and USD
|
Date |
Time |
Currency |
Previous |
|
|
May 28 |
Tentative |
USD |
||
|
May 29 |
13:00 |
USD |
-3.5% |
|
|
14:00 |
USD |
69.2 |
||
|
May 30 |
12:30 |
CAD |
-1.6% |
|
|
14:00 |
USD |
4.1% |
Click here to read USD/CAD Technical Analysis.
Originally posted here
