USD/CAD Fundamental Analysis – August 27, 2015- Forecast

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Published: Aug 26, 2015, 12:07 UTC

Analysis and Recommendations: The USD/CAD dipped 42 points to trade at 1.3295 after soaring to a record high as oil prices and gold prices weigh heavily

USD/CAD Fundamental Analysis – August 27, 2015- Forecast

Analysis and Recommendations:

The USD/CAD dipped 42 points to trade at 1.3295 after soaring to a record high as oil prices and gold prices weigh heavily on the Loonie. The CAD considered a commodity currency is under a great deal of pressure due to the market stress stemming from China. The Canadian dollar today dipped to just below the 75-cent US level for the first time in more than a decade.

The loonie fell below the psychologically important threshold in the afternoon, closing at 74.96 cents US after the recovery in North American stock markets lost steam.

The outlook for the Canadian dollar is uncertain, because there are doubts over whether the U.S. Fed will raise rates in September in light of the current market turmoil. At the same time, Bank of Canada Governor Stephen Poloz might be tempted to cut rates, which would also push the dollar lower.

Commodities such as gold and copper continued to fall on fears that China, one of the biggest markets, would have a protracted economic slowdown. The Chinese stock market fell another 7.6 per cent on Tuesday.

But markets in Europe and North America rebounded with triple-digit gains after steep losses the past three days. Many analysts believe the markets are now oversold and some investors are seeking bargains.

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
USD	API Weekly Crude Oil Stock	-7.300M	1.900M	-2.300M
NZD	Trade Balance (MoM) (Jul)	-649M	-750M	-194M
NZD	Trade Balance (YoY) (Jul)	-2,690M	-2,660M	-2,850M
AUD	Construction Work Done (QoQ) (Q2)	1.6%	-1.5%	-0.8%
GBP	BBA Mortgages	46.0k	46.0k	44.8k

Upcoming Economic Events that you should be monitoring:

Thursday, August 27, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Private New Capital Expenditure		-2.5%	-4.4%
GBP	Nationwide HPI (YoY) (Aug)		3.1%	3.5%
GBP	Nationwide HPI (MoM) (Aug)		0.4%	0.4%
EUR	Spanish GDP (QoQ) (Q2)		1.0%	1.0%
RUB	Central Bank reserves (USD)			362.9B
USD	GDP (QoQ) (Q2)		3.2%	2.3%
USD	GDP Price Index (QoQ) (Q2)		2.0%	2.0%
USD	Initial Jobless Claims		274K	277K
USD	Pending Home Sales (MoM) (Jul)		1.0%	-1.8%