Yahoo Finance USD/CAD Daily Fundamental Forecast – March 16, 2018
It was a day of dull trading in most of the currency pairs over the last 24 hours but the bulls in this pair chose this precise moment to push the pair through the important resistance region around 1.30 on the back of some serious strength in the dollar. The dollar strength has come about not due to the presence of any major economic data. In fact, yesterday saw the release of some lightweight data in the form of unemployment claims.
USDCAD Pushes Through 1.30
Though this data came in stronger than expected, the extent of the dollar strength that it managed to spur as far as this pair is concerned, is something that we have to take with a pinch of salt. We believe that the bulls in the pair had already made up their mind to push the pair higher and that strong data was only a pretext for them to push it higher as the earlier and more important data like the inflation and retail sales had been only choppy at best. In any case, this helped the pair to push through the 1.30 region and it trades comfortably above that region as of this writing.
The bulls are firmly in control of this pair at this point of time and the next target for the bulls should be the region around 1.3180. The weakness in the oil prices, the threat of a trade war affecting the Canadian economy and the fact that the BOC has been forced on the backfoot due to all these developments have been weighing on the CAD. On the other hand, the market is waiting for the Fed next week to announce the first rate hike of the year from the US and it also believes that it would lay down the timeline for accelerated rate hikes.
Looking ahead to the rest of the day, we do not have any major economic data or news from the US or Canada and with us approaching the weekend and with some major announcements from the Fed scheduled for next week, it is likely to be consolidation for the rest of the day.
This article was originally posted on FX Empire
