Analysis and Recommendations: The USD/CAD dipped 13 points after soaring toward a recent high. The currency simply is making a correction after soaring
The USD/CAD dipped 13 points after soaring toward a recent high. The currency simply is making a correction after soaring close to the 1.33 price level and is holding at 1.3274. The Canadian Dollar rallied from the 1-month low as investors cashed in on the sharp appreciation in the US dollar caused by the positive Non-Farm Payrolls data last week.
In economic news, Canada’s housing starts fell to a level of 198.1K in October, dropping at its fastest pace in eight months, from a three-year high reading of 231.3K in the previous month. Investors had expected it to drop to a level of 200.0K.
Separately, the Organization for Economic Co-operation and Development (OECD), forecasted Canada’s economic growth to slow down to 1.2% this year. It further estimated the country to grow by 2.0% and 2.3% in 2016 and 2017, respectively.
The US Dollar jumped to multi-month highs against most major currencies after it was announced that the US unemployment rate fell to 5.9%, the lowest level since 2008 and 271,000 jobs were added in October, the largest monthly increase for the entire year. The positive data heightened talk of the Fed raising interest rates in the upcoming December monetary policy meeting. This would be the first interest rate since 2006, with such a rate rise enabling foreign investment, strengthening the dollar.
Gains against the Loonie were limited after Statistics Canada reported that the number of employed people increased by 44.400 last month, surpassing analyst expectations for a 10.000 gain. Meanwhile, unemployment in Canada, the world’s 11th largest economy, fell from 7.1% to 7.0%.
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 |
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JPY |
Adjusted Current Account |
0.78T |
1.50T |
1.59T |
|
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JPY |
Current Account n.s.a. (Sep) |
1.468T |
2.235T |
1.653T |
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GBP |
BRC Retail Sales Monitor (YoY) (Oct) |
-0.2% |
0.7% |
2.6% |
|
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AUD |
Home Loans (MoM) (Sep) |
2.0% |
0.1% |
1.5% |
|||
AUD |
NAB Business Confidence (Oct) |
2 |
3 |
5 |
|
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CNY |
CPI (MoM) (Oct) |
-0.3% |
-0.2% |
0.1% |
|
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CNY |
CPI (YoY) (Oct) |
1.3% |
1.5% |
1.6% |
|
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CNY |
PPI (YoY) (Oct) |
-5.9% |
-5.8% |
-5.9% |
Upcoming Economic Events that you should be monitoring:
Wednesday, November 11, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
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NZD |
RBNZ Gov Wheeler Speaks |
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USD |
API Weekly Crude Oil Stock |
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2.800M |
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AUD |
Westpac Consumer Sentiment |
|
|
4.2% |
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CNY |
Fixed Asset Investment (YoY) (Oct) |
|
10.2% |
10.3% |
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CNY |
Industrial Production (YoY) (Oct) |
|
5.8% |
5.7% |
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GBP |
Average Earnings Index +Bonus (Sep) |
|
3.2% |
3.0% |
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GBP |
Claimant Count Change (Oct) |
|
1.5K |
4.6K |
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GBP |
Unemployment Rate (Sep) |
|
5.4% |
5.4% |
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GBP |
BoE Gov Carney Speaks |
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EUR |
ECB President Draghi Speaks |
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Government Bond Auctions
Date Time Country
Nov 09 13:00 Norway Details bond auction on 11 Nov
Nov 09 16:30 Italy Announces details of BTPs/CCTeu on 12 Nov
Nov 09 19:00 US Holds 3-year note auction
Nov 10 11:00 Holland Eur 2.0-3.0bn 0% Apr 2018 DSL
Nov 10 11:30 UK 0.125% 2058 I/L Gilt auction
Nov 10 19:00 US Holds 10-year note auction
Nov 11 11:03 Sweden Holds bond auction
Nov 11 11:30 Germany Eur 3bn 0.25% Oct 2020 Bobl
Nov 11 12:15 Norway Holds bond auction
Nov 12 11:10 Italy Auctions BTPs/CCTeus
Nov 12 11:30 UK 4.25% 2039 Gilt auction
Nov 12 19:00 US Holds 30-year bond auction
Nov 18 11:30 Germany New Eur 5bn Dec 2017 Schatz
Nov 18 10:30 UK 2% 2025 Gilt auction
Nov 18 10:30 Portugal Eur 1-1.25bn; bond auction
Nov 18 15:30 Sweden Announces details of Bond on 25 Nov
Nov 18 N/A Holland Announces details of Bond on 24 Nov
Nov 19 09:30 Spain Auctions Bonos/Obligaciones
Nov 19 10:50 France Auctions BTANs
Nov 19 11:50 France Auctions OATi
Nov 19 N/A US Holds 10-year TIPS auction
Nov 20 16:30 Italy Announces details of CTZ/BTPei on 25 Nov