USD/CAD Weekly Fundamental Analysis, October 13-17, 2014 Forecast

Weekly Analysis and Recommendation:  

The USD/CAD gained 15 points as the dollar recovered on Friday and ended the week at 1.1200 and the CAD weakened as oil prices hit historical lows and gold remained weak. The Canadian dollar was lower Thursday as the greenback strengthened against other currencies, particularly the euro, following another dose of weak data from Germany that raised worries about Europe’s economic powerhouse. The Canadian dollar rose versus most of its major counterparts after a report showed the nation’s jobless rate fell to a six-year low on the biggest monthly increase in employment since May 2013.

The currency strengthened after job creation more than tripled the average forecast of private sector economists and the economy created a record number of private sector jobs in September. The rise in payrolls comes after the country lost jobs the previous month and reports last week showed gross domestic product growth stalled in July and the country posted an unexpected trade deficit in August.

The Canadian currency — which has been hovering around the 90-cent mark — had jumped just over half a U.S. cent Wednesday after minutes from the U.S. Federal Reserve’s latest meeting showed that central bank officials agreed that they would begin raising interest rates only when measures of the economy’s health and inflation signaled the time was right. They showed that the Fed has moved away from linking any rate change to any specific period.

 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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.  

Historical: From 2011 to present

Highest: 1.1270 CAD on Oct 04, 2014

Average: 1.0042 CAD over this period

Lowest: 0.9407 CAD on Jul 26, 2011

 

Upcoming Major Economic Events for the week of Oct 13-17, 2014