USD/CAD Fundamental Analysis – December 21, 2015 -Forecast

Analysis and Recommendations:

The USD/CAD added 5 points to remain near the top of its trading range. The CAD is at 1.3944 ahead of Canadian inflation data due shortly in the North American session.  The CAD has had no option but to first waiver then capitulate in the face of the present global macroeconomic picture. On one hand the slide in oil prices, on the other the Fed’s monetary tightening. The US dollar gained exponentially over the past three weeks and is now challenging the 1.40 handle against the Canadian dollar. Following the Fed rate hike this week, BoC Governor Poloz positioned himself ahead of the curve to push back any speculation that could possibly propel any hawkish call in Canadian rates.

The core inflation is expected to have accelerated to 2.3% on year to November, from 2.1% last month. The divergence from the BoC’s 2% target could temporarily calm down the BoC doves, who may think that the overheating in inflation may prevent the BoC from edging an unsustainably dovish play.

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Monday, December 21, 2015

Government Bond Auctions

Date Time Country

Dec 23 17:30 Italy Announces details of CTZ on 29 Dec, plus BTP/CCTeus on 30 Dec

Dec 23 US Holds 2-year FRN auction