USD/CAD Fundamental Analysis for April 21, 2011

The USD/CAD pair extended its drop on Wednesday, where a weak U.S. dollar in addition to rising commodities helped the Canadian dollar to rise and push the USD/CAD pair to the downside, where optimism spread through financial markets as U.S. companies announced strong financial results, while existing home sales in the United States rose above expectations.

The USD/CAD pair will probably continue to drop over the upcoming period, although we don’t exclude to witness some upside correctional movements, but the general trend should remain to the downside.

Thursday 12:30, Canada will release the retail sales index for the month of February, where retail sales declined in January by 0.3% and expectations suggest that retail sales increased in February by 0.5%, while retail sales excluding autos probably increased by 0.5% in February after coming in flat in January.

Thursday 12:30, the U.S. Labor Department will release the weekly jobless claims for the week ending April 16, where conditions in the labor market seem to have improved recently, and jobless claims are expected to reflect that improvement, where jobless claims are expected to drop to 390K from 412K reported last week.

Thursday 14:00, the U.S. will release the leading indicators index for the month of March, where the leading indicators are considered as a gauge for future economic activities in the next three to six months, the leading indicators are expected to rise by 0.3% in March after rising by 0.8% in February.

Thursday 14:00, the U.S. will release the Philadelphia Fed index for the month of April, where the Philadelphia Fed is expected to ease to 36.8 from 43.4 reported back in March, where the manufacturing sector continues to expand and seems to be on course to recover from its worst slump since the early 1980s.

Written by ForexMansion.com