USD/CAD Fundamental Forecast – June 27, 2016

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Published: Jun 24, 2016, 10:55 UTC

The USD/CAD soared 248 points as the greenback rallied on safe haven trades and oil tumbled. Gold soared but did little to support the Loonie. David

The USD/CAD soared 248 points as the greenback rallied on safe haven trades and oil tumbled. Gold soared but did little to support the Loonie. David Cameron has announced his resignation as Prime Minister of the United Kingdom after the shock victory for the campaign to leave the European Union.

Cameron said in a statement Friday that he is likely to be gone by the time of the Conservative Party conference in October.

His statement came as stock markets around Europe saw significant falls, with early signs that this could be an event that causes a shock as deep as 1987’s Black Monday.

The loonie is closely tied to the price of oil, and the price of benchmark North American crude dropped 11 cents to finish at $48.67 US per barrel Oil futures had been down more than $1 earlier in the day before they recovered most of their losses.

“The main factor weighing on prices is the much appreciated U.S. dollar,” Carsten Fritsch, analyst at Commerzbank, told Reuters.

“What is more, rain forecast in the Canadian oil province of Alberta is giving rise to hopes that the devastating wildfires there could be brought under control.”

Oil was lower after the U.S. Energy Information Administration said Wednesday that crude inventories unexpectedly rose by 1.3 million barrels to 541.3 million barrels for the week ended May 13.

The U.S. dollar gained strength and stock markets sold off as investors digested the possibility of a June interest rate hike by the U.S. Federal Reserve.

FxEmpire provides in-depth analysis for each asset 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 up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

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Monday, June 27, 2016

Country	Name	Volatility	Previous
Spain	Parliamentary Election	2
NZ	Trade Balance (MoM)	2	292
NZ	Imports	2	4.01
NZ	Trade Balance (YoY)	2	-3.66
NZ	Exports	2	4.3
U.S.	Markit Services PMI	2	51.3
U.S.	Markit PMI Composite	2	50.9
U.S.	Dallas Fed Manufacturing	2	-20.8
U.S.	Gross Domestic Product Price Index	2	0.6
U.S.	Gross Domestic Product Annualized	2	0.8
U.S.	Personal Consumption Expenditures Prices	2	0.3
U.S.	Core Personal Consumption Expenditures	2	2.1
U.S.	S&P/Case-Shiller Home Price Indices	2	5.4
U.S.	Consumer Confidence	2	92.6