USD/CAD Fundamental Analysis – July 4-8, 2016 – Forecast

The USD/CAD dipped 0.74% to trade at 1.291 with the Loonie supported by climbing oil and gold prices. Following the release of Canada GDP data for April and industrial product price index for the loonie traded mixed against its major rivals. While the loonie rose against the euro, yen and the aussie, it changed little against the greenback. Sadiq Adatia, chief investment officer at Sun Life Global Investments, said he is surprised at how quickly the markets have turned around but he thinks it will be short-lived.

“What we’ll see is a rebound but then we’ll see markets come back down again,” said Adatia, adding that the negative effects from Britain’s vote and the consequences that flow from it will take time to be fully felt.

The implications can also mean more instability in the 19-country Eurozone as other countries consider a similar move.

“Brexit opens the door for other political parties in the Eurozone to propose the same scenario,” he said. “It could cause more disruptions to the Eurozone and hurt global confidence as well.”

In New York, indexes were also higher, helped by positive news on consumer spending and a big acquisition by the Canadian Imperial Bank of Commerce

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.