USD/CAD Fundamental Analysis – August 20, 2015 – Forecast

Analysis and Recommendations:

The USD/CAD dipped 28 points to 1.3030 as the greenback eased as traders prepared for the FOMC minutes and inflation in the US later today. Otherwise talk of the Fed postponing interest rates lowered the value of the dollar.  With crude oil prices holding low, demand for the Canadian Dollar cooled significantly. Oil prices tumbled after Iran warned that the newly lifted sanction on their production would see the market flooded with Iranian oil, further exacerbating the global glut. Additionally, the most recent US rig count saw yet more North American drillers despite ever falling demand.

The USD/CAD exchange rate advanced by around 0.3% this week. With differing opinion as to the timing of a Federal Reserve benchmark rate hike, the US Dollar has seen comparatively subdued trade during Monday’s European session. A fractional uptrend, however, can be attributed to the NAHB Housing Market Index, which met with economists projections of a rise from 60 to 61 in August.

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:

 

Upcoming Economic Events that you should be monitoring:

Thursday August 20, 2015

Government Bond Auctions

Date Time Country

Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz

Aug 19 11:03 Sweden Holds bond auction

Aug 20 10:30 Spain Auctions Bonos/Obligaciones

Aug 20 11:30 UK Auctions 4.25% 2036 Gilt

Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug