USD/CAD Fundamental Analysis December 14, 2012, Forecast

Analysis and Recommendations:

The USD/CAD continued to decline today to trade at 0.9839 after the US Federal Reserve added additional stimulus and outright bond buying program adding 1 trillion US dollar to their balance sheet. Additional stimulus weakens the US dollar but is a plus for the Canadian economy. The Canadian dollar is modestly stronger against its U.S. peer today, shrugging off a slew of data from both sides of the border, as the Federal Reserve’s latest easy-money policies continue to echo across the market.

The FOMC will also continue buying $40 billion of mortgage-backed securities each month until the labor market substantially improves.

And, in a surprise move, the Fed specified the levels of unemployment and inflation that might prompt it to begin raising short-term interest rates, which are now near zero.

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 December 13, 2012 actual v. forecast

 

Upcoming Economic Events that affect the CAD and USD

Government Bond Auction

Date Time Country 

Dec 14 11:00 Belgium 

Dec 14 15:30 UK 

Dec 17 10:10 Norway 

Dec 17 18:00 US 

Dec 18 01:30 Japan 

Dec 18 09:30 Spain 

Dec 18 10:10 Greece 

Dec 18 18:00 US 

Dec 19 18:00 US 

Dec 20 10:30 UK 

Dec 20 16:30 Italy  

Dec 20 18:00 US 

Dec 21 16:30 Italy