The USDCAD pair ended the day slightly lower from the highs of its range after threatening to break through the highs during the course of the day. It did break through the 1.28 region for a brief while and even threatened to make it a full fledged break through but the upcoming FOMC minutes seems to have weighed on the dollar as it weakened slightly all across the board yesterday.
USDCAD Looks to Breakout
The CAD was also helped by the strong oil prices which seem determined to move towards their next target in the $60 region in the short term. This helped to boost the CAD and this boost was enough to bring the prices below 1.28 again during the day. The focus of the markets since the beginning of the week has been on the happenings in Germany and the market has by and large ignored the dollar so far.
But that is all likely to change today as we have the FOMC minutes being released later in the day. The market is looking for signs of the impending rate hike in December and any sort of hawkishness in the minutes is likely to lead to a rally in the dollar which should move the pair beyond 1.28 and further in due course of time. The market would also be looking for signs of further rate hikes in the US and hence what the Fed thinks about the economy is going to be very crucial.
The Fed has always maintained that it would like to see the incoming data before deciding on further rate hikes and we are probably going to see some more of the same language in their minutes today. It is going to be an interesting day overall and it remains to be seen whether the prices of USDCAD would be able to breakout of their long held range atleast today.
This article was originally posted on FX Empire
More From FXEMPIRE:
- E-mini S&P 500 Index (ES) Futures Technical Analysis – November 22, 2017 Forecast
- AUD/USD and NZD/USD Fundamental Daily Forecast – Rangebound Unless Fed Minutes are Extremely Hawkish
- USD/JPY Fundamental Daily Forecast – Rangebound Unless Fed Minutes are Extremely Hawkish
- Forex Trading Signals – November 22, 2017
- Crude Oil Touching Important Values
- Technical Checks For Important CHF Pairs: 22.11.2017