USD/CAD Fundamental Forecast – February 1, 2016

The USD/CAD added 49 points as the CAD could not get a boost on the stronger US dollar and higher oil prices.  Canada's main index gained ground for the third straight day, riding a wave of rising oil prices. The S&P/TSX composite index was up 214.16 points at 12,591.93 for a cumulative gain over the last three days of nearly 450 points.
The oil-sensitive Canadian dollar was also trading higher the last two days and gave it to the strength of the US dollar ahead of major data due today.
In New York, the Dow Jones industrial average rose 125.18 points to 16,069.64, while the S&P 500 advanced 10.41 points to 1,893.36 and the Nasdaq added 38.51 points to 4,506.68.
The Canadian dollar rallied to a three-week high against its U.S. counterpart on Thursday as crude oil prices rose, while the potential for a U.S. Federal Reserve rate hike in March was not aided by weaker-than-expected U.S. data.