USD/CAD Fundamental Forecast – May 3, 2016

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Published: May 2, 2016, 12:14 UTC

The USD/CAD dipped 21 points to 1.2534 as oil and gold prices support the Loonie and the falling dollar weighed on the pair. The Canadian dollar lost

The USD/CAD dipped 21 points to 1.2534 as oil and gold prices support the Loonie and the falling dollar weighed on the pair. The Canadian dollar lost ground against the other major currencies in early European trading, following a decline in oil prices on increased oil production in Iraq in April, adding to signs over supply glut in market. Crude for June delivery fell 0.32 to 45.60 per barrel.

Iraqi exports rose to 3.36 million barrels a day in April, from March’s 3.29 million barrels a day, which were near the record 3.365 million in November, Oil Ministry spokesman Asim Jihad said on Sunday.

Data released over the weekend showed that China’s manufacturing and service sector activities expanded less than the previous month in April. Even though the data reinforced signs of a tepid economic recovery, it raised doubts about the effect of recent stimulus measures. European stocks are mixed, with trading thin amid public holidays in Greece, Ireland, Russia and the UK

The loonie showed mixed performance in Asian deals. While the loonie held steady against the greenback, euro and the Aussie, it declined against the yen.

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.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
	China – Labor Day
	United Kingdom – Early May Bank Holiday
EUR	Manufacturing PMI (Apr)	51.7	51.5	51.5
USD	Manufacturing PMI (Apr)			50.8
USD	ISM Manufacturing Employment			48.1
USD	ISM Manufacturing PMI (Apr)		51.5	51.8

Upcoming Economic Events that you should be monitoring:

Tuesday, May 3, 2016

Cur.	Event	Actual	Forecast	Previous
	Japan – Constitution Day
AUD	Building Approvals (MoM) (Mar)		-3.0%	3.1%
CNY	Caixin Manufacturing PMI (Apr)		49.9	49.7
AUD	Interest Rate Decision (May)		2.00%	2.00%
GBP	Manufacturing PMI (Apr)		51.2	51.0