The Canadian dollar has had a net positive day Thursday with oil prices dictating again the fate of the Canadian dollar. Cooperation talks between theOrganization of Petroleum Exporting Countries (OPEC) and Russia are plain end north of $ 30 even though Iran is working to further legal and logistical problems to reincorporate in world production.
The Federal Open Market Committee announces the (FOMC) yesterday to keep the benchmark rate unchanged between 0.25 and 0.50 percent is no surprise that the macro conditions had changed since the Fed historically high rates in December. The volatile first weeks of 2016 have implicated the four interest rate projected. The fact that this is also an election year also would limit the Fed's ability to intervene in the most delicate period leading up to the presidential election.
USC / CAD lost 0.32 percent, but there was a wide trading range 1.43 percent as both OPEC and Russia did not give details about their discussions or their potential production targets. OPEC members have posted record years of production, as well as Russia and other non-OPEC members such as the United States. Technological innovation caused by shale drilling has created a supply glut result that OPEC has tried to maintain market share through higher production levels at the expense of prices.
Canadian monthly gross product (GDP) will be released tomorrow at 8:30 am EST. Strong retail sales in November boosted forecast to 0.3 percent, but it would not be a shock if the GDP figures perform on Friday. Some of the positive effects of the weaker currency can already be felt while exports increased. It might not be enough to offset the overall decline in oil prices, but that Canada diversify its economy grows some of these efforts will be rewarded.
The price index for Canadian raw materials (RMPI) will also be released with an expected decrease of 4 percent. Falling commodities have reduced commodity prices and curbed inflation expectations.
The gross domestic product (GDP) of the United States will be published along with the Canadian counterpart. Unlike Canadian data is monthly in the US publish preliminary data for the fourth quarter. This is the first version (there are two more later) and so is the one who sets the expectations of what is to follow. The US economy is expected to have risen 0.8 percent. Not the pace of the Fed probably has plans to base their monetary policy. For now, the Fed seems to be content with a moderate growth rate, given the crisis in the global economy.
The divergence of GDP will be interesting to watch between the United States and Canada which gives an advantage to the dollar, but the market will be more focused on growth in the United States because it could derail plans Fed in the coming months
CAD events to watch this week :.
Friday, January 29
0:00 JPY BOJ Outlook Report
Attempting JPY BOJ Press Conference
8:30 CAD GDP m / m
8:30 USD Advance GDP q / q
* All times EST
for a full list of events planned in the forex market see the calendar economic MarketPulse
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