USD/CAD Weekly Fundamental Analysis, November 23 – November 27, 2015 Forecast

Weekly Analysis and Recommendations:  The USD/CAD closed higher last week with the price action primarily mirroring the movement in the crude oil market. The U.S. Dollar weakened early in the week on concerns over the timing of future interest rate hikes by the Fed. This was generated by the release of the Fed minutes which showed a December rate hike is likely, but that future rate hikes would occur “gradually”. 

The Forex pair finished the week, up 0.0027, or 0.20% at 1.3351. 

Crude oil prices drifted sideways-to-lower on concerns over the global supply glut. According to the EIA, crude oil inventories stood at 487.3 million barrels, a little off the April record of 490.9 million. Prices aren’t likely to recover over the near-term because of resilient production during this low price environment.  

Volume is likely to be below average this week because of the U.S. holiday on Thursday. This could trigger volatile two-sided price action over the short-term. Additionally, there may be counter-trend reactions to Tuesday’s U.S. GDP report and Wednesday’s durable goods report. 

Over the long-run, however, expectations are for the rally to continue due to weak oil prices and higher U.S. Treasury yields. 

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. 

Reports to Watch This Week:

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