USD/CAD Fundamental Analysis November 8, 2013 Forecast

Analysis and Recommendations:

The USD/CAD eased by 3 points to trade at 1.0415 ahead of major US data due later in the trading day. The strength of the US dollar today pushed the DX to trade at 81.01 adding 44 pips. The strength of the dollar did not seem to have much effect on this pair. Gold remained weak as crude oil gained a bit but still remains well below its trading range, while the discount for Alberta crude soared. Canada (CANLNETJ)’s dollar strengthened for the first time in three days amid a rally in commodities including crude oil, the nation’s biggest export.

The currency, called the Loonie, gained versus most major peers after a Canadian business barometer rose more than forecast. Crude oil, the nation’s biggest export, climbed from a five-month low. The Loonie’s gains were tempered as investors awaited October employment reports for the U.S. and Canada this week that are forecast to show declines.

“Crude is up close to 2 percent, that’s probably filtering through and providing a bit of a bid for the Loonie,” David Doyle, a strategist at Macquarie Capital Markets, said by phone from Toronto. “Commodities are up generally and the Loonie, which is seen as a commodity type of currency, probably has some benefit from that.”

The Canadian dollar added to gains today after a report on the website of Western University’s business school showed the Ivey purchasing managers’ index rose to 62.8 in October on a seasonally adjusted basis, the highest since May, following a September reading of 51.9. Economists surveyed by Bloomberg predicted the gauge would reach 52.0. Readings of more than 50 indicate purchasing by governments and companies advanced.

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 November 7, 2013 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Nov 08 11:00 Belgium

Nov 08 16:30 Italy

Nov 11 10:30 Germany

Nov 12 09:10 Holland

Nov 12 10:10 Italy

Nov 12 10:10 Norway

Nov 12 10:30 Belgium

Nov 12 15:30 UK

Nov 12 18:00 US

Nov 13 09:30 Swiss

Nov 13 10:10 Italy

Nov 13 10:10 Sweden

Nov 13 10:30 Germany

Nov 13 18:00 US

Nov 14 10:30 UK

Nov 14 16:00 US

Nov 14 18:00 US