USD/CAD Fundamental Analysis March 14, 2013 Forecast

Analysis and Recommendations:

The USD/CAD is trading at 1.0252 fairly flat as the markets get started for the day as strong eco data in the US supports the US economic recovery. Retail sales in the US soared well above forecast surprising speculators who were worried that the report would miss the mark due to payroll tax increases and budget cuts. USDCAD is trading at the lower end of its range from February 28th, having retraced all of last Wednesday’s post-BoC rally while also retracing some of the weakness that had been seen ahead of the Q4 GDP release. Factors supporting CAD remain unchanged and are: relative central bank policy, a narrowing in oil price spreads that improve Canada’ s terms of trade, and reserve diversification flows. Risk reversals, a measure of options pricing, suggest a considerable reduction in demand for protection against USDCAD upside.

Traders are closely waiting for the outcome of the upcoming FOMC meeting next week where the Fed will decide if it will continue monetary stimulus programs after strong data releases this month.

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 March 13, 2013 actual v. forecast

 

Upcoming Economic Events that affect the CHF, EUR, GBP, CAD and USD

Government Bond Auction

Date Time Country 

Mar 14 01:30 Japan

Mar 14 10:10 Sweden

Mar 14 16:00 US

Mar 14 18:00 US

Mar 18 10:00 Slovakia

Mar 18 10:10 Norway

Mar 19 09:30 Spain

Mar 20 10:10 Sweden

Mar 20 10:30 Germany

Mar 20 10:30 Portugal

Mar 21 09:30 Spain

Mar 21 09:50 France

Mar 21 10:30 UK

Mar 21 10:50 France

Mar 21 16:30 Italy

Mar 21 16:00 US

Mar 21 18:00 US

Mar 22 16:30 Italy