USD/CAD Fundamental Analysis April 14, 2014 Forecast

Analysis and Recommendations:

The USD/CAD gained 28 points to trade at 109.62 ahead of US data due a bit later in the day. The CAD is weaker, with a sudden shift leading into the NA open. Over the last two sessions CAD has softened as it digests the weaker than expected Chinese trade data as well as the Fed minutes. USDCAD has traded in a 1.0858 to 1.1279 range since March 20; the down‐side might be a bit lower than 1.0858; however we expect in the near‐term USDCAD will be comfortable trading in a range either side of 1.1000 There is no data expected today, with next week’s highlights the release of inflation and the BoC statement, press conference and MPR release

Selling pressure in equity markets also weighed on the risk-sensitive Canadian dollar. While many analysts still expect the Canadian currency to begin weakening again, its recent bounce higher could persist into the coming sessions

While strength in recent Canadian economic data was one factor supporting the turnaround, broader U.S. dollar weakness also contributed. The bullish sentiment about the U.S. dollar in evidence at the beginning of the year has become “a little frayed,” and market participants have taken profits on the U.S. dollar gains and covered short positions in other currencies such as the Canadian dollar, Mr. Osborne said.

The next significant domestic events for the Canadian dollar will be the Bank of Canada’s policy and quarterly monetary policy report on Apr. 16.

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 up to the data analysis and information in our weekly reports.

Economic Data April 11, 2014 actual v. forecast

 

Upcoming Economic Events that affect the EUR, GBP, CAD and USD

Government Bond Auction

Date Time Country 

Apr 14 09:30 Germany

Apr 15 09:30 Belgium

Apr 15 14:30 UK

Apr 16 09:03 Sweden

Apr 16 09:30 Germany

Apr 17 09:00 Slovakia

Apr 17 15:00 US

Apr 17 15:30 Italy

Apr 17 17:00 US