USD/CAD Fundamental Forecast – May 4, 2016

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Published: May 3, 2016, 12:43 UTC

The USD/CAD dipped 10 points as the greenback continued its decline. Oil products have been trading in the red as traders book profits as this weighs on

The USD/CAD dipped 10 points as the greenback continued its decline. Oil products have been trading in the red as traders book profits as this weighs on the Loonie. The CAD is at 1.2519. The Canadian dollar continued to be lower against most major rivals in Europe on Tuesday.

The loonie fell to a new 2-week low of 84.06 versus the yen and a 5-day low of 1.2592 against the greenback, off its early high of 84.97 and more than a 10-month high of 1.2461, respectively.

The loonie dropped to 1.4563 against the euro, its weakest since April 18.

As the U.S. dollar fell to its lowest since January 2015, currency experts told CNBC the currency’s decline had further to run.

The greenback has fallen since the start of last week and traded at 92.26 against a basket of major currencies on Tuesday. This was the dollar index’s lowest level since the start of last year.

Oil prices turned lower on Tuesday as the dollar pared back early losses and as rising Middle East output and fears over China’s economic health weighed.

Brent oil was trading at $45.47 per barrel at 09:19 GMT, down 36 cents or 0.79%. U.S. crude futures were down 40 cents or 0.89% at $44.38 a barrel.

Oil had risen earlier as the dollar slumped, making purchases of dollar-denominated commodities cheaper for countries using other currencies. (Investing)

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.

Upcoming Economic Events that you should be monitoring:

Wednesday, May 4, 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