USD/CAD Fundamental Analysis – October 7, 2015 – Forecast

Analysis and Recommendations:

The USD/CAD eased by 6 points as the dollar declined today. The CAD has gained a bit of strength as oil and gold prices hold on to their gains. The Canadian dollar strengthened against most major currencies in the Asian session on Tuesday amid crude oil prices rise, after Russia signaled that it want to meet with OPEC and non-OPEC nations to discuss the global oil market situation of year’s big drop in oil prices.

Investors await the US crude inventories data this week, with API’s report today and EIA’s report tomorrow.

Further speculation that the Federal Reserve will delay raising interest rates until next year, also increased the demand of crude oil prices.

The Institute for Supply Management’s non-manufacturing index came in lower than expected on Monday, making an October rate hike extremely unlikely. The ISM said its non-manufacturing index dropped to 56.9 in September from 59.0 in August, although a reading above 50 indicates growth in the service sector. Economists had expected the index to dip to 58.0. Taken with Friday’s lackluster jobs report, the Fed might wait until next spring to tighten.

Meanwhile, shares rose following the overnight rally on Wall Street and in the European markets amid renewed hopes that the Federal Reserve will delay raising interest rates. The stability in commodity prices and news that trade ministers from 12 Pacific Rim Countries have signed a new Trans Pacific Partnership trade agreement also boosted risk appetite.

Monday, the Canadian dollar rose, as oil prices climbed amid a weaker dollar, and data showed that the US rig count continued to fall for the fifth consecutive week in the week ended October 2.

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:

Upcoming Economic Events that you should be monitoring:

Wednesday, October 7, 2015

Government Bond Auctions

Date Time Country

Oct 06 11:10 Austria Holds RAGB bond sale

Oct 06 11:30 UK 4.5% 2034 Gilt auction

Oct 06 19:00 US Holds 3-year note auction

Oct 07 11:30 Germany Eur 4bn Aug 2025 Bund

Oct 07 16:30 Sweden Announces details of auction on 14 Aug

Oct 07 19:00 US Holds 10-year note auction

Oct 08 11:03 Sweden Holds I/L bond auction

Oct 08 17:30 Italy Announces details of BTP/CCTeu on 13 Oct

Oct 08 19:00 US Holds 30-year bond auction