USD/CAD Fundamental Analysis December 19, 2012, Forecast

Analysis and Recommendations:

The USD/CAD climbed today to trade at 0.9848 adding 13pts. The US dollar was weaker against the euro and most crosses but was able to gain on the Looney. There was little in the way of economic or fundamental data today and news flow other than then US budget negotiations. 

Both President Barack Obama and House Speaker John Boehner have made significant concessions, gravitating away from their entrenched positions on spending cuts and tax increases.

A new proposal softens Mr. Obama’s long-held insistence that taxes rise on individuals earning more than $200,000 and families making more than $250,000. He is now offering a new threshold of $400,000 and is lowering his 10-year tax revenue goals he had argued for a few weeks ago.

The U.S. current account trade deficit narrowed in the July-September quarter to the lowest level since late 2010, but the improvement may not last. The U.S. Commerce Department said the deficit fell to $107.5-billion in the third quarter, down nine per cent from the second quarter imbalance of $118.1-billion. It was the lowest trade gap since the final three months of 2010.

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 18, 2012 actual v. forecast

 

Upcoming Economic Events that affect the CAD and USD

Government Bond Auction

Date Time Country 

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