Paul Rosenberg, Market Analyst at www.economiccalendar.com, on USD/CAD

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Paul Rosenberg
On the US side, the indicators were mixed last week, as housing data was solid, while durable goods orders came out weak. Besides, GDP posted a lukewarm gain of 0.8%, making the Fed's Chair Yellen keep the door open to a June rate hike. In the meantime, the Bank of Canada kept rates at 0.50%. Which of the abovementioned fundamentals may have weighed on the USD/CAD currency pair the most?

While the BoC kept rates unchanged last week, they did express a more optimistic view than expected despite the impact of the Alberta wildfires. In light of the fires, the Central bank believes significant weakness could be felt in Q2, however, a strong rebound is expected quickly thereafter. The upbeat tone of the BoC spurred selling in USD/CAD.

What should a trader focus on this week in order to successfully trade this currency pair and what is your forecast for USD/CAD by the end of the week?

With a major event, namely, the BoC meeting, occurring so recently, it is unlikely that data with lesser impact, namely, the GDP figures, following immediately will have a strong influence on the USD/CAD currency pair. However, with Fed speculations rising for a June rate hike, Friday's non-farm payrolls could spark higher than normal volatility. Given the USD/CAD is in the middle of its trading range created over the past two weeks, between 1.3187 and 1.2836, it is difficult to determine ahead of Friday's data, which way the USD/CAD will head between now and then.

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Thu, 02 Jun 2016 05:46:03 GMT

David Tulk, Chief Canada Macro Strategist at Toronto Dominion Bank, on Canadian economy and CAD

To my mind, that is a fairly reasonable assumption. The Fort McMurray wildfires are inherently a transitory shock that will impact the economy.

Fri, 27 May 2016 10:59:04 GMT

Garrett Goggin, Associate Editor at Gold Stock Analyst, on Gold

I would not agree with this point of view. We just went through one of the longest bear markets for about six years long, with negative interest rates in about 35% of the countries worldwide which is a part of gold prices.

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