USD/CAD Fundamental Analysis, April 22, 2015 – Forecast

Analysis and Recommendations:

The USD/CAD added 21 points as the dollar recovered after Wall Street rallied on Monday. The CAD continued to trade higher as oil and gold prices remain firm. The pair is holding at 1.2246. The dollar remained firmer after falling against the other major currencies last week when a run of soft economic data saw investors push back expectations on the timing of a rate hike by the Federal Reserve.

Oil continued its rally on Monday, pushing stocks and the Canadian dollar higher. West Texas Intermediate crude was up 58 cents. Brent crude, the most common international contract, was up 10 per cent since the beginning of the year at $63.45 US a barrel. Western Canada Select, a Canadian contract, was at $40.03 after rising all last week.

The decision by Chinese monetary authorities to press a little more firmly on the monetary stimulus pedal buoyed a number of commodity-linked currencies early on Monday. However, less than a day later, it’s only the Canadian dollar – or Loonie as it’s more colloquially known – that’s hung onto any of those gains.

It suggests that the new move by China may have limited influence in reversing losses for the Australian dollar, which has been trampled by the stronger US dollar.

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.

Today’s economic releases actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, April 22, 2015

Government Bond Auctions

Date Time Country

Apr 22 11:03 Sweden Sek 4bn 2.5% May 2025 bonds

Apr 22 11:15 Norway Holds bond auction

Apr 22 17:30 Italy Announces details of CTZ/BTPei on 27 Apr

Apr 23 17:00 US Announces 2-yr FRN, plus 2/5/7 yr Notes

Apr 23 19:00 US Usd 18bn 5-yr TIPS

Apr 24 17:30 Italy Announces details of BTP/CCTeu on 29 Apr

Apr 27 11:10 Italy Auctions CTZ/BTPei

Apr 27 11:30 Germany Eur 1.5bn 12M (Apr 2016) Bubills

Apr 27 19:00 US Auctions 2-yr Notes

Apr 28 19:00 US Auctions 5-yr Notes

Apr 29 11:10 Italy Auctions BTPs/CCTeus

Apr 29 11:30 Germany Eur 4bn Apr 2020 Bobl

Apr 29 11:30 UK Auctions 2% 2025 Conventional Gilt

Apr 29 16:30 Sweden Details bond auction on 06 May

Apr 29 19:00 US Auctions 2-yr FRN, plus 7-yr Notes