USD/CAD Fundamental Analysis Jan. 24, 2012, Forecast

Economic Events: (GMT)

There are no scheduled economic events for the US

13:30     CAD     Core Retail Sales (MoM)     0.2%     0.7%

13:30     CAD     Retail Sales (MoM)     0.3%     1.0%

Core Retail Sales and Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

A higher than expected reading should be taken as positive/bullish for the CAD, while a lower than expected reading should be taken as negative/bearish for the CAD.

Analysis and Recommendations:

The USD/CAD is currently trading 1.0088.

The USD dropped today against all of its trading pairs. The greenback fell on news of a potential deal in Greece and positive reports from the EU meetings. The French Minister assured investors that an agreement was forth coming.

As the US dollar fell, commodity prices rose, pushing up Gold and Crude Oil giving strength to the Canadian Dollar.

Crude Oil surges over 1.50 to just under the 100.00 mark as the EU Ministers announced an immediate embargo on Iranian Oil and also froze all assets from the Central Bank of Iran.

As oil goes up so does the Twooie, they are partners in crime. A good deal of the GDP of Canada is based on its oil exports.

Upcoming Govt Bond Sales Dates

Jan 23  12:00  Norway  Details bond auction on Jan 30

Jan 24  09:30  Netherlands Eur 1.5-2.5bn Jan 2013 & Jan 2042 DSL

Jan 24  09:30  Spain  Auctions 3 & 6M T-bills

Jan 24  16:30  Italy   Details CTZ/BTPei on Jan 26 & BOT on Jan 27 &

Jan 24  18:00  US  Auctions 2Y Notes

Jan 25  10:10  Sweden  Nominal bond auction

Jan 25  10:30  Germany  Eur 3.0bn 3.25% Jul 2042 Bund

Jan 25  16:30  Italy   Details BTP/CCTeu on Jan 30

Jan 25  18:00  US  Auctions 5Y Notes

Jan 26  10:10  Italy   Auctions CTZ/BTPei

Jan 26  18:00  US  Auctions 7Y Notes

Jan 27  10:10  Italy   BOT auction

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