USD/CAD Fundamental Analysis October 7, 2014 Forecast

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Updated: Aug 24, 2015, 23:00 UTC

Analysis and Recommendations: The USD/CAD fell 27 points as the markets adjusted and corrected from Friday’s drastic response to the nonfarm payroll

USD/CAD Fundamental Analysis October 7, 2014 Forecast

Analysis and Recommendations:

The USD/CAD fell 27 points as the markets adjusted and corrected from Friday’s drastic response to the nonfarm payroll report and unemployment unexpectedly dropping to 5.9% in the US. The CAD is trading at 1.1222. Crude oil gained a bit today while gold remained flat, not assisting the CAD. Traders are closely monitoring the Ivey PMI report due later in the session. The Canadian dollar fell three-quarter of a U.S. cent Friday to close at a fresh six-month low as Canadian trade data for August widely missed expectations and the greenback strengthened amid a strong U.S. jobs report for September.

The loonie dropped 0.76 of a cent to 88.82 cents US as Statistics Canada reported that Canada’s trade balance hit a deficit of $615 million, down from a surplus of $2.2 billion during August. Merchandise imports rose 3.9 per cent while exports decreased 2.5 per cent.

Also, the Labor Department reported that the American economy created 248,000 jobs last month, which handily beat expectations of about 215,000. The jobless rate ticked down 0.2 of a point to 5.9 per cent, the lowest level since July 2008. August job creation was revised upward from 142,000 to 180,000.

Canadian employment data for last month will be released on Friday.

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:

Cur.	Event	Actual	Forecast	Previous
EUR	German Factory Orders	-5.7%	-2.5%	4.9%
CAD	Ivey PMI		53.0	50.9

Upcoming Economic Events that you should be monitoring:

Currency

JPY	Monetary Policy Statement
AUD	Cash Rate
AUD	RBA Rate Statement
JPY	BOJ Press Conference
CHF	Foreign Currency Reserves
GBP	Halifax HPI m/m
CHF	CPI m/m
CHF	Retail Sales y/y
GBP	Manufacturing Production m/m
GBP	BOE Credit Conditions Survey
CAD	Building Permits m/m
GBP	NIESR GDP Estimate
USD	JOLTS Job Openings