Weekly Fundamental Outlook
American Session
For progressing weekly session of foreign currency exchange, both the US and Canadian dollars are projected of minor gains against most of their major counterparts as optimistic figures are assumed in their economic indicators. Last week in the foreign exchange, the US dollar saw negative results in its trading as two major impact indicators showed worse-than-expected results in the releases last week, which affected their currency valuation. The release of the US New Home Sales showed a worse-than-expected figure of 250 thousands as compared to its prior reading of 301 thousands; this negative figure shows signs of contraction in the US housing market. Likewise, the Core Durable Goods Orders report demonstrated pessimistic results in its figure as low growth was seen ending its consensus by -0.6 percent, slowing down the US dollar in the process. However, the US Unemployment Claims saw a sharp rise in its reading ending its consensus by 382 Thousand lower than its prior figure of 387 thousands. This means that more jobs were created for the previous week as compared to the week prior.
[ad code = 3] In contrast, the Canadian dollar showed signs of losses in its exchange rate as abated results were reported in its previous economic indicators. The Canadian Core Retail Sales report reflected unfavorable results in its figure as low growth was seen in its retail sector, slowing down the Canadian dollar in the process.
On Monday in the Forex calendar, expect the US dollar to appreciate as its Pending Home Sales is expected to see optimistic results, with a projected flat rate of 0.0 percent. This translates into an increase in mortgages plus sales of real estate showing a high demand for housing, signaling growth for the US economy. On Tuesday, expect the US dollar to depreciate in its currency valuation as a negative result is expected in its Consumer Confidence Index, with a projected decrease to 64.9 points. This suggests that consumer confidence is seen to have been in decline, affecting the overall spending and growth of the economy. As such, this indicates signs of weakness, which projects a negative outlook for the US economy.
On Thursday, expect optimistic results in the US market as strong figures are anticipated in its Unemployment Claims, with a projected rise of 379 thousands. This report serves as a gauge that employment in the US is picking up gradually due to the high turnover in jobs creation. And on Friday, expect a stellar labor data for the US as the Unemployment Rate is anticipated to show a strong figure of 8.9 percent while the Non-Farm Employment Change is predicted to slip by only one notch to 191 thousands. Thus for the weekly session in progress, trading forex with North American currencies are presumed to be profitable.