The USD/CAD pair rose on Friday and nearly erased all of its losses that were acquired throughout the week, where inflation as measures by CPI rose below expectations in Canada in April, while Canada’s retail sales in March trailed median estimates, which lowered expectations that the Bank of Canada will raise benchmark interest rates, and accordingly, the CAD weakened severely, which pushed the USD/CAD pair to the upside.
The USD/CAD pair’s rise was also supported on Friday by falling crude oil prices, where crude oil prices continued to trade below $100 a barrel, noting the CAD is a commodity currency that suffers from lower commodity prices.
The USD/CAD pair should continue to rise on Monday, although this projection is based on expectations that crude oil prices and other commodities will continue to drop on Monday amid the lack of economic news from both Canada and the United States, and the pair could move within a limited range with an upside tendency.
USD/CHF Technical Analysis for May 23, 2011
USD/CHF Daily Fundamental Analysis for May 23, 2011
As of 07:00 GMT, the Swiss economy will release money supply M3 for the year ending April, yet it is expected to have slight effect on the pair's movements, where the US lacks fundamentals at the beginning of the week.
Later in the week, eyes will be on some trade data from Switzerland, and housing and GDP data from the United States.
The outlook for the pair remains to the upside as the dollar is predicted to continue its rebound against the franc after having a break in the week ending May 20 as the SNB is estimated to keep borrowing cost low for longer period, while the greenback may gain some strength after the end of the $600 billion bond-purchase program next month.
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