USD/CAD Fundamental Analysis October 20, 2014 Forecast

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Updated: Aug 25, 2015, 01:00 UTC

Analysis and Recommendations: The USD/CAD eased by 25 points ahead of US data as traders sold off to book profits as the CAD fell to a 2014 low against

USD/CAD Fundamental Analysis October 20, 2014 Forecast

Analysis and Recommendations:

The USD/CAD eased by 25 points ahead of US data as traders sold off to book profits as the CAD fell to a 2014 low against the US dollar. The CAD was also supported by a surge in oil prices. Worries over a new round of debt troubles, spurred by the impact of a lack of growth and inflation on government finances, have driven much of the past week’s selling. But it all comes in the context of the end of the Fed’s programme of bond-buying, to date planned for this month.

Yellen will speak about ‘Economic Opportunity’ at separate events later on Friday. Media reported this week that the Fed chief had expressed continuing confidence in the US recovery. Market conditions in the euro-zone are hardly a positive for the euro and a perceived inability of the ECB to respond to worsening developments would be a clear negative for sentiment. Secondly, monetary policy expectations will be ultimately driven by relative growth developments and on that front, the US will remain in a far better position that the euro-zone for some time to come.

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 actual vs. forecast:

There are no data releases scheduled Friday in Asian or European markets, focus will be on Janet Yellen’s speech later today

Cur.	Event	Actual	Forecast	Previous
USD	Building Permits (Sep)		1.029M	1.003M
USD	Building Permits (MoM)		2.8%	-5.1%
USD	Fed Chair Yellen Speaks
USD	Housing Starts (MoM)		4.8%	-14.4%
USD	Housing Starts (Sep)		1.004M	0.956