USD/CAD Fundamental Forecast – July 27, 2016

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Updated: Jul 26, 2016, 08:13 UTC

The USD/CAD dipped 11 points as the CAD gathered a bit of hope as the greenback declined and oil prices edged up but otherwise there is no hope for the

USD/CAD Fundamental Forecast – July 27, 2016

The USD/CAD dipped 11 points as the CAD gathered a bit of hope as the greenback declined and oil prices edged up but otherwise there is no hope for the Loonie which is trading at 1.3207. Canada’s main stock index racked up a loss, amid declining commodities and cautious anticipation of the latest meeting of the U.S. Federal Reserve.

Craig Fehr, a Canadian markets strategist with Edward Jones, said traders are showing a little reservation ahead of the latest Fed meeting set to end on Wednesday. Many are taking a “wait-and-see” approach, although most economists don’t believe the U.S. central bank will make any moves towards interest rates.

“It’s a low likelihood that the Fed will change rates at this meeting,” said Fehr. “Much of the focus will be on any change in tone or commentary or rhetoric on how they’re viewing recent economic trends, global uncertainty and what that means for the balance of the year.”

The Fed had boosted the rate last December by a quarter-point to a range of 0.25 per cent to 0.5 per cent. At the time, it also forecasted another four rate hikes this year.

Crude oil dipped below $44 US a barrel on Friday, extending a 1½-month decline and bringing it to its lowest level since mid-April.

The benchmark West Texas Intermediate futures contract traded as low as $43.74 US on Friday, down a dollar from Thursday’s close, before inching back up to $44.19 by mid-afternoon. It hasn’t been below $44 since April 20.

the Canadian dollar, whose value often moves alongside that of oil, shed about half a per cent Friday and was trading at around 76 cents US, putting it in line for a fifth straight day of decreases.

Friday’s stable reading on Canadian inflation for the month of June — Statistics Canada reported the annualized rate at 1.5 per cent — means there will be little pressure on the Bank of Canada to hike interest rates anytime soon to tamp down price increases. South of the border, economic analysts are increasingly expecting an earlier rate hike from the U.S. Federal Reserve.

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Wednesday, July 27, 2016

Country	Name	Volatility	Previous
AUD	Consumer Price Index (QoQ)	3	-0.2
AUD	RBA trimmed mean CPI (YoY)	3	1.7
AUD	Consumer Price Index (YoY)	3	1.3
AUD	RBA trimmed mean CPI (QoQ)	3	0.2
EUR	Gfk Consumer Confidence Survey	2	10.1
GBP	Gross Domestic Product (YoY)	2	2
GBP	Gross Domestic Product (QoQ)	2	0.4
USD	Durable Goods Orders	3	-2.2
USD	Durable Goods Orders Core	3	-0.3
USD	Pending Home Sales (YoY)	2	2.4
USD	Pending Home Sales (MoM)	2	-3.7
USD	Fed’s Monetary Policy Statement	3
USD	Fed Interest Rate Decision	3	0.5