USD/CAD Fundamental Analysis July 23, 2012, Forecast

Posted July 20, 2012 13:57 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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Analysis and Recommendations:

The USD/CAD is trading at 1.0115 as a stronger US gains momentum as the CAD is flat from yesterday’s close and up 0.7% over the past five sessions, ending a week in which the BoC has reaffirmed its bias toward tightening (albeit over the medium term). CAD is trading at its highest level in roughly two months and continues to retrace the losses that occurred over the month of May. The BoC is currently one of the most hawkish central banks as many of its peers are either on hold or in the midst of easing, a fact that has yet to be reflected among market participants, specifically with OIS markets indicating expectations of easing over the next 9 months. Commodities are weaker ahead of the NA session, while equity futures are mixed, providing little for CAD in terms of bullish movement ahead of the data.

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Economic Data July 20, 2012 actual v. forecast

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