USD/CAD Fundamental Analysis – August 17, 2015 – Forecast

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Published: Aug 14, 2015, 10:04 UTC

Analysis and Recommendations: The USD/CAD climbed 10 points as gold and oil continued to weaken stressing the Canadian dollar. The pair is trading at

Analysis and Recommendations:

The USD/CAD climbed 10 points as gold and oil continued to weaken stressing the Canadian dollar. The pair is trading at 1.3070. The loonie plunged when China’s central bank first devalued its yuan earlier this week, and then rebounded sharply when the U.S. dollar weakened.

But rest assured that when all is said and done, the loonie is expected to tumble further that’s the “path of least resistance” given the outlook for commodity prices and the different paths of the Bank of Canada and the Federal Reserve.

In the global macro scheme of things, we could be in for a rough patch of market movements, particularly in the near term.

Anything like the depreciation of the yuan, whose initial downward dip sparked a rout in stocks and certain currencies, tends to roil markets, pushing investors toward safe-haven assets such as the U.S. 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:

Cur.	Event	Actual	Forecast	Previous
EUR	German GDP (QoQ) (Q2)	0.4%	0.5%	0.3%
EUR	CPI (YoY) (Jul)	0.2%	0.2%	0.2%
USD	PPI (MoM) (Jul)		0.1%	0.4%

Upcoming Economic Events that you should be monitoring:

Monday, August 17, 2015

Cur.	Event	Actual	Forecast	Previous
JPY	GDP (QoQ) (Q2)		-0.5%	1.0%
JPY	GDP (YoY) (Q2)		-1.9%	3.9%
EUR	Trade Balance (Jun)			18.8B
USD	NY Empire State Manufacturing Index		5.00	3.86
CAD	Foreign Securities Purchases (Jun)			-5.45B