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USD/CAD Loonie Higher After Oil Price Boost Ahead of Trade Balance

USD/CAD Loonie Higher After Oil Price Boost Ahead of Trade Balance

higher Canadian dollar after soaring oil prices following supply problems

the dollar got a boost of energy prices today as it began the trading session lost ground against the USD and headed north of 1.30. Oil prices jumped after the supply problems from Libya and Brazil stimulate energy markets worldwide and USD / CAD was trading at 1.3065.

The analysis by Kamal Sharma BofA Canada faces the highest output of a year on the first ten developed economies. The demand for Canadian assets and the dollar was lower after the fall in energy prices. The Canadian economy was too heavily dependent on crude oil prices, and the collapse caused by the shift in record levels of supply with lower demand there is no other sector that can compensate for the loss. Manufacturing has failed to bounce back from the pain inflicted by the strong dollar in the wake of the credit crisis.



Bank of Australia holds 2.0 percent rates

the RBA held rates at 2.00 percent, despite some pressure to cut. Governor Glenn Stevens is optimistic about the Australian economy and appreciated the AUD above 0.72. The currency pair has given some of the gains, but is now back to the 0.72 price level.

Canada America and the press trade balance

The fate of the Canadian position dollar in the first week of November will depend on the Canadian and US economic indicators to be released same time. On Wednesday, November 4 both trade balances are published. Last month, the Canadian trade data showed a larger than expected deficit. Exports fell 3.6 percent to a low of three years resulted in a $ 2.53 billion deficit. While services PMIs show steady growth, it is not enough to offset the losses in the manufacturing and energy sectors. Forecasts for the Canadian trade data this month was a deficit of $ 2 billion because it has been little change to the composition of the Canadian economy.

The US trade balance also registered a deficit larger than expected last month to $ 48.3 billion. Exports fell and imports continue to grow as the USD strength becomes a drag on the recovery in the US economy. members of the Federal Reserve will be watching the final trade balance to measure the impact it could have on the gross domestic product. the growth of the United States is facing significant headwinds that could delay the rise in interest rates awaited indefinitely.

Canadian and US Employment Reports close week trading

The highlight of the week will be the nonfarm payrolls US (NFP) report to be published on Friday, November 6. At the same time, Canadian jobs report will be published. The trend for both reports was diverge with the US data lose traction, while Canadian jobs continue to exceed expectations. The size of the economy and the importance of NFP will provide the most important US data. Having said that one has to compare Canadian data will give the loonie some arguments and not to the total US data thank you

CAD events to watch this week :.

Wednesday, November 4
8:30 CAD trade balance
Thursday, November 5
10:00 CAD Ivey PMI
Friday, November 6
8:30 CAD employment Change
8:30 CAD unemployment rate
8:30 Building Permits CAD m / m

* All pm EST
for a complete list of scheduled events in the forex market visit [MarketPulse Economic Calendar] (http://www.marketpulse.com/economic-events/)


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