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USD/CAD Weekly Forecast December 26-30, 2011, Fundamental Analysis

By:
FX Empire Editorial Board
Updated: Mar 5, 2019, 13:24 UTC

The USD/CAD pair rebounded to the downside last week, as we started from last week to see the thin holiday volume with the choppy trading evident, where

USD/CAD Weekly Forecast December 26-30, 2011, Fundamental Analysis

USD/CAD Weekly Forecast December 26-30, 2011, Fundamental Analysis
USD/CAD Weekly Forecast December 26-30, 2011, Fundamental Analysis
The USD/CAD pair rebounded to the downside last week, as we started from last week to see the thin holiday volume with the choppy trading evident, where the eyes were on the ECB three year loans which flooded banks with 489 billion euros and the market still has a cautious reaction to it.

Meanwhile, economic data from the United States showed good results, however, markets were focused on the GDP report for the third quarter, which signaled that the growth is still weak in the United States, while data from Canada proved to be mixed as well, where GDP contracted lower than expectations.

This week we are surly in the holiday mode and with thin volumes of trading any move might be violent and especially with the lack of major data.

The high level of uncertainty in markets could provide the USD/CAD pair with more bullish momentum, where traders will be eyeing developments in Italy, and accordingly, we should expect Europe to dominate the pair’s movement next week. Nonetheless, if optimism spreads through markets, the USD/CAD pair will decline, as demand for higher yielding assets is likely to rise in that case, and that should provide the Canadian dollar with flow.

Highlights for this week that will probably affect the USD/CAD pair’s direction are:

Monday December 26:

Markets closed for Christmas holiday.

Tuesday December 27:

The United States will release the Consumer Confidence for December at 15:00 GMT which is expected to rise to rise to 58.1 from 56.0.

Wednesday December 28:

No major news scheduled and the market movement will be thin on low volume and focused on the sentiment. The eyes will be on Italy that will be preparing to auction new bonds.

Thursday December 29:

The U.S. will start with the weekly jobless claims for the week ending December 24 at 13:30 GMT after last week they dropped to 364,000.

The Chicago PMI for December is due at 14:45 GMT and expected to ease to 60.2 from 62.6. At 15:00 GMT we have the pending home sales for November which is expected to ease to 1.8% after the 10.4% surge.

Friday December 30:

No major news scheduled and the market movement will be thin on low volume and focused on the sentiment.

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