USD/CAD Fundamental Analysis – August 7, 2015 – Forecast

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Published: Aug 6, 2015, 12:54 UTC

Analysis and Recommendations: The USD/CAD eased a bit away from its highs as traders reconsidered the price which is trading at 1.3170 well above its

USD/CAD Fundamental Analysis – August 7, 2015 – Forecast

Analysis and Recommendations:

The USD/CAD eased a bit away from its highs as traders reconsidered the price which is trading at 1.3170 well above its recent trading ranges. Gold and oil remain weak weighing on the currency. When asked whether the dollar’s strength – one of the main reasons behind disappointing U.S. data since the beginning of this year – will get in the Fed’s way with its rate hikes over the next year, analysts were split. The Canadian dollar hit a new 11-year low today against its U.S. counterpart, as weak oil prices and a possible further interest rate cut continue to hurt sentiment in Canada’s currency.

The U.S. Federal Reserve is widely expected to raise its key lending rate later this year — a likelihood that is helping to drive the U.S. dollar higher against the loonie. Negative sentiment about the Canadian dollar was further reinforced last Friday when Statistics Canada reported GDP figures for May that showed the economy contracted by 0.2 per cent, against expectations of no change.

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
AUD	Employment Change (Jul)	38.5K	10.0K	7.0K
AUD	Unemployment Rate (Jul)	6.3%	6.0%	6.1%
EUR	German Factory Orders (MoM) (Jun)	2.0%	0.2%	-0.3%
GBP	Halifax House Price Index (YoY) (Jul)	7.9%	8.2%	9.6%
GBP	Industrial Production (MoM) (Jun)	-0.4%	0.1%	0.3%
GBP	Manufacturing Production (MoM)	0.2%	0.2%	-0.6%
GBP	BoE Inflation Report
GBP	BoE QE Total (Aug)	375B	375B	375B
GBP	Interest Rate Decision (Aug)	0.50%	0.50%	0.50%
GBP	BoE MPC Meeting Minutes

Upcoming Economic Events that you should be monitoring:

Friday, August 7, 2015

Cur.	Event	Actual	Forecast	Previous
JPY	BoJ Press Conference
USD	Nonfarm Payrolls (Jul)		223K	223K
USD	Unemployment Rate (Jul)		5.3%	5.3%
CAD	Employment Change (Jul)		5.0K	-6.4K
CAD	Ivey PMI (Jul)		52.0	55.9