USD/CAD Forecast Dec. 13, 2011, Fundamental Analysis
The USD/CAD pair rebounded to the upside on Monday as pessimism spread through markets after Friday’s EU summit. While Moody’s also added to the jitters by saying the EU will be under review after the summit failed to produce decisive measures to end the crisis. Investors are starting to doubt the ability of EU leaders to come up with a resolution to the debt crisis and accordingly, investors targeted lower yielding assets including the U.S. dollar, which pushed USD/CAD pair higher.
Traders will continue to monitor the developments from the 17-bloc euro nation and the European leader’ latest moves to contain the debt crisis, where we expect volatility to persist through the sessions this week.
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The USD/CAD pair could still rise if the pessimism continues to dominate markets, but we still expect volatility to hold the steer for now, as uncertainty remains the main theme in markets, and that could also lead to deep fluctuations for the USD/CAD pair.
Tuesday December 13:
The United States will join the session at 13:30 GMT with the retail sales index for November, where the advance retail sales index could have expanded by 0.6% from 0.5%, while the retail sales less Autos index could have advanced by 0.5% from 0.6%.
At 15:00 GMT the United States will provide the business inventories index for October, which could have improved 0.4% from the previous steady reading.
At 19:15 GMT the Federal Open Market Committee (FOMC) will announce the rate decision (DEC 13), with expectations the Federal Bank could have left rates unchanged at 0.25%.