ForeCastle

USD/CAD Fundamental Analysis May 15, 2014 Forecast




The USD/CAD eased by 4 points to trade at 1.0901 after the US dollar made healthy gains throughout the early part of the week. The loonie rose 0.08 of a cent to 91.74 cents US amid general U.S. dollar weakness. Analysts point to low expectations for first quarter U.S. gross domestic product growth, owing to the impact of severe winter weather and suggestions that the economy may actually have contracted during the January-March period. “Accordingly the expectations for Fed interest rate hikes have been pared back slightly,” said Camilla Sutton, Chief FX Strategist, Managing Director Scotiabank Global Banking and Markets.

It’s a light week for Canadian data. Statistics Canada releases the March report on manufacturing shipments on Thursday.
Markets are relatively quiet with the USD focused on individual domestic stories and negative developments for EUR