USD/CAD Fundamental Forecast – September 19, 2016

The USD/CAD soared 49 point to 1.3205 as oil prices tumbled gold eased and the greenback soared. The ICE U.S. Dollar index, a measure of the greenback’s strength against a basket of six rival currencies, was flat at 95.480.

Many are now looking ahead to meetings of the Federal Reserve and Bank of Japan next week. While the Fed is widely expected to keep interest rates steady, media reports have speculated that the BOJ might take action, including possibly cutting interest rates further into negative territory.

Canada’s biggest stock market tumbled more than 200 points, while the loonie also took a beating as falling oil prices piled on downward pressure. One helpful component of the Canadian Economy has been their exposure to Emerging Markets and how exports were expected to help Canada come out of its economic slump that is shown through the Citi Economic Surprise Index for Canada that is showing its worst rating since January when USD/CAD was trading in the mid-1.4000s.

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 September 19, 2016

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Government Bond Auctions

Date Time Country Auction

Sep 19 11:00 Belgium Holds OLO auction

Sep 20 11:30 UK Jul 2047 Gilt

Sep 21 10:30 Denmark Holds bond auction

Sep 21 11:03 Sweden Holds bond auction

Sep 21 11:30 Germany Eur 4bn 0% Oct 2021 Bobl

Sep 22 17:20 Italy Announces details of bond auction