USD/CAD Fundamental Analysis January 30, 2014 Forecast

Analysis and Recommendations:

The USD/CAD is flat today while traders await the Federal Reserve decision. The pair is trading at 1.1152 close to its recent high. The Canadian dollar drifted lower Tuesday ahead of the U.S. Federal Reserve meeting Wednesday that could signal how much confidence the Fed has in the U.S. recovery. Markets have been severely buffeted over the last few sessions on concerns about emerging markets and plunging currencies in countries such as Turkey, Argentina and China. But on Tuesday, stocks seemed to recover, buoyed by decisions in India and Argentina to raise interest rates.

The market is being influenced by anticipation that the Fed will announce another $10 billion reduction in its monthly bond purchases to $65 billion later today. That would indicate the U.S. central bank has confidence in the U.S. economic recovery and could put further pressure on the loonie and other currencies. Now the money underpinning currencies in emerging markets is flowing out, heading for the greenback and forcing emerging market currencies lower. The loonie is a victim of the same rush to the U.S. dollar. Some experts believe the Canadian dollar will fall as low as 85 cents before the slide stops.

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.

Economic Data January 29, 2014 actual v. forecast

 

Upcoming Economic Events that affect the EUR, GBP, CAD and USD

Government Bond Auction

Date Time Country 

Jan 30 01:30 Japan

Jan 30 10:03 Sweden

Jan 30 10:10 Italy

Jan 30 18:00 US

Jan 31 10:03 Sweden

Feb 03 10:00 Norway

Feb 03 10:03 Sweden

Feb 04 10:03 Sweden

Feb 04 10:15 Austria

Feb 04 10:30 Belgium

Feb 04 10:30 UK