By FXEmpire.com
Analysis and Recommendations:
The USD/CAD continues to skyrocket, on risk aversion and safe haven movement. The pair is now trading at 1.0308 as the USD continues to climb. The Dollar Index is holding just under 83.00 at 82.98.
Risk Aversion has exploded today as the euro is falling and has hit a low below 1.24 and continues to drop. The EU turned into a three ring circus, with Spain as the main attraction and a lot of he said, she said as the Spanish Prime Minister tried to clarify his statements of earlier in the week, about funding the Spanish banks. Rumors are that the ECB declined the offer, while the ECB is claiming they have never been officially approached by Spain. Interest rates in Spain and Italy soared today, with Spain at 6.7% and Italy right behind. In the third ring is Greece where new polls show the anti-euro party now in the lead.
Unfortunately for the CAD, there has been no support for the Looney and with oil prices trading below 89.00 the overall sentiment for the CAD is negative.
In the US today, the housing data was negative well under forecast, but it hardly made a ripple in the strength of the USD.
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 30, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
May 30 |
JPY |
BoJ Governor Shirakawa Speaks |
|||
|
AUD |
Construction Work Done (QoQ) |
5.5% |
3.0% |
-3.4% |
|
|
AUD |
Retail Sales (MoM) |
-0.2% |
0.2% |
1.1% |
|
|
CHF |
KOF Leading Indicators |
0.81 |
0.48 |
0.43 |
|
|
EUR |
Italian 10-Year BTP Auction |
6.03% |
5.66% |
Upcoming Economic Events that affect the CAD and USD
|
Date |
Time |
Currency |
Previous |
|
|
May 31 |
12:15 |
USD |
ADP Non-Farm Employment Change |
119K |
|
12:30 |
CAD |
Current Account |
-10.3B |
|
|
12:30 |
USD |
Prelim GDP q/q |
2.2% |
|
|
12:30 |
USD |
Unemployment Claims |
370K |
|
|
13:45 |
USD |
Chicago PMI |
56.2 |
|
|
15:00 |
USD |
Crude Oil Inventories |
0.9M |
|
|
Jun 1 |
12:30 |
CAD |
GDP m/m |
-0.2% |
|
12:30 |
USD |
Non-Farm Employment Change |
115K |
|
|
12:30 |
USD |
Unemployment Rate |
8.1% |
|
|
12:30 |
USD |
Core PCE Price Index m/m |
0.2% |
|
|
12:30 |
USD |
Personal Spending m/m |
0.3% |
|
|
14:00 |
USD |
ISM Manufacturing PMI |
54.8 |
Government Bond Auctions
May 31 14:30 Sweden
Jun 04 10:00 Norway
Jun 05 00:30 Japan Jun 05 09:30
Jun 05 14:30 Sweden
Jun 06 09:30 Germany
Jun 06 09:30 Portugal
Jun 06 14:30 UK
Jun 07 00:30 Japan
Jun 07 08:30 Spain
Jun 07 08:50 France
Jun 07 09:10 Sweden
Jun 07 15:00 US
Jun 08 10:00 Belgium
Jun 08 15:30 Italy
Click here for further USD/CAD Forecast.
Originally posted here
