In a report published Tuesday, RBC Capital Markets analyst Joseph Spak previewed the U.S. Auto and Auto Parts sector ahead of earning season, noting that first quarter results should be "fine" but the larger focus will be on the outlook. According to Spak, foreign exchange translation is a "real issue" as many companies have already issued guidance based on a U.S. dollar exchange rate of 1.20 versus the euro, potentially causing issues given the analyst's go-forward exchange rate of only 1.05.