The USD/CAD closed out the week at 1.3115 seeing a gain of 1.34% this week as the US dollar soared and the oil sands wildfire sparked back up towards the
The USD/CAD closed out the week at 1.3115 seeing a gain of 1.34% this week as the US dollar soared and the oil sands wildfire sparked back up towards the end of the week. New York Federal Reserve President William Dudley on Thursday said the U.S. economy could be strong enough to warrant a rate increase in June or July.
His comments reinforced surprisingly clear signals of a possibly imminent rate hike in minutes of the Federal Reserve’s April policy meeting and underpinned an already firm greenback.
The dollar index last stood at 95.293, having been as high as 95.502 – a level last seen on March 29. It was up 0.7 percent this week and has risen 2.4 percent in the past three weeks.
Data failed to show a sustained rally in the pair as CPI and Retail Sales both came in below expectations, while Core CPI and Core Retail Sales came in slightly above expectations. The pair had an initial move higher, but was quickly reversed to bring price down to the lower end of the opening range.
The pair managed to do a second run up at the equity open, on the back of US Dollar strength and weakness in Oil prices, to reach highs of 1.3161 prior to dropping below the 1.3150 resistance area once again.
Canadian traders will be off on Monday on a bank holiday. On Wednesday the Bank of Canada is to present its rate statement and overnight rate. No changes are expected in the overnight rate.
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.
Major Economic Events for the week:
Cur. | Event | Actual | Forecast | Previous | |||||
Monday, May 23, 2016 | |||||||||
Canada – Victoria Day | |||||||||
Tuesday, May 24, 2016 | |||||||||
USD | New Home Sales (Apr) | 523K | 511K | ||||||
Wednesday, May 25, 2016 | |||||||||
CAD | Interest Rate Decision | 0.50% | 0.50% | ||||||
USD | Crude Oil Inventories | 1.310M | |||||||
Thursday, May 26, 2016 | |||||||||
GBP | GDP (QoQ) (Q1) | 0.4% | 0.4% | ||||||
GBP | GDP (YoY) (Q1) | 2.1% | 2.1% | ||||||
USD | Core Durable Goods Orders (MoM) (Apr) | 0.3% | -0.2% | ||||||
USD | Pending Home Sales (MoM) (Apr) | 0.6% | 1.4% | ||||||
Friday, May 27, 2016 | |||||||||
USD | GDP (QoQ) (Q1) | 0.9% | 0.5% | ||||||
Upcoming Government Bond Auctions
Date Time Country
May 23 N/A UK Syndicated tap of 0.125% I/L 2046 Gilt
May 23 11:03 Sweden Sek 1.25bn 0.125% Jun 2019 I/L bond
May 23 11:30 Germany Eur 1.5bn May 2017 Bubill
May 23 12:00 Norway Details of bond auction on May 25
May 23 17:20 Italy Details of Zero‐coupon/BTP€i auction
May 25 11:03 Sweden Holds bond auction
May 25 11:05 Norway Holds bond auction
May 25 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund
May 26 11:10 Italy Announces details of bond auction
May 26 11:10 Italy Holds Zero‐coupon/BTP€i auction
May 26 17:20 Sweden Details of I/L auction on Jun 02