Canadian dollar could threaten the range on higher employment

Fundamental forecasts for gold: neutral
The Canadian dollar ended the month pleased against its American counterpart, in the sense of risk rise and loons can appreciate more in the week ahead as the economic record is expected to encourage improved prospects for the region. Indeed, the employment report highlights the greater risk of event for the following week, and development may support the Canadian currency as the labour market is expected to add another K 5 jobs in June.
The economic recovery gradually gathers pace, there is one more argument for the Bank of the Canada to raise the interest rate of 1.00% reference, and we see Governor Mark Carney continue to talk of speculation for higher borrowing costs to combat the record increase in domestic debt. However, we will be convinced that a possible rate hike would be a single agreement, as the sovereign debt crisis continues to drag on global growth, and it appears that investors see a case for more facilities as the BoC is designed to encourage a sustainable recovery. According to Credit Switzerland night index swap, market participants requested that costs more at the beginning of June, but start at a reduced rate for the following 12 months the price, and the change in the prospect of an interest rate can gather pace over the short term in the slowdown of growth and inflation. In turn, we could attend the Central Bank to maintain its approach of wait and see throughout 2012, and the USDCAD may face range-bound prices in July that the market participants weigh prospects for monetary policy.
As the USDCAD continues to find support provisional on 1.0160 figure, the pair seems ready for a rebound in the short term in the next few days, and we see the action side price in July in the uncertainty surrounding the fundamental Outlook for the Canada. However, we will be either to keep a close eye on the index relative of strength as the trend in the oscillator continues to take form, and we see the exchange rate back to the tracing of Fibonacci from 78.6% of 2007 low in 2009 high around 1.0100-10 should developments on tap for the speculation of fuel next week for a BoC rate hike. -DS