USD/CAD Weekly Fundamental Analysis March 31 – April 4, 2014 Forecast

Weekly Analysis and Recommendation: 

The USD/CAD recovered this week to close at 1.1058 coming off its high of 112.46 hit on Monday morning.  Futures traders reduced bets that the Canadian dollar will decline against its U.S. counterpart by the most on record amid speculation China will add monetary stimulus, boosting demand for raw materials and energy.

Speculators cut wagers on Canada’s dollar weakening against the greenback, known as net shorts, by 36,590 positions as of March 25 from a week earlier, the most in records going back to 1993, figures from the Washington-based Commodity Futures Trading Commission show. The shift reduced short positions to 33,215 contracts, from 69,805 on March 21 

The loonie has been the worst performer this year among the greenback’s 16 major peers since the Bank of Canada said in January the risks of falling inflation had increased; prompting bets it would cut borrowing costs. The Canadian currency dropped 4 percent against the dollar.

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: 1.1279 CAD on Mar 20, 2014

Average: 1.0042 CAD over this period

Lowest: 0.9407 CAD on Jul 26, 2011

 

Major Economic Events for the week of March 24 – 28 actual v. forecast for the Canadian & US Dollar

 

Economic Highlights of the coming week that affect the American and Canadian Markets

Government Bond Auction

Date Time Country         

Mar 31 09:00 Norway

Apr 01 09:30 Belgium

Apr 03 08:30 Spain

Apr 03 09:03 Sweden

Apr 03 15:00 US