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USD/CAD Daily Fundamental Forecast – December 15, 2017

USDCAD has moved lower over the last 24 hours but there has not bee much fundamental drivers for such a move. In fact, we had some positive news from the US yesterday in the form of economic data and hence that should have meant that the dollar should have got stronger. But the price action seems to be moved more by trade positioning at this time and hence not much logic should be read into these moves.

USDCAD In Range

The oil prices got stronger yesterday as they shook off the inventory data from the previous day and this would have added some strength to the CAD. But the dollar got its own boost from the retail sales data which came in stronger than expected at around 0.8% and this helped the dollar to remain steady during the course of trading yesterday. As we had mentioned in our forecast yesterday, the pair continues to trade well within the range and consolidate.

USDCAD Hourly
USDCAD Hourly

The BOC Governor Poloz made a speech yesterday and though he did not add much that the market did not already know of, it helped the CAD to gain in strength during this period and hence we now see some choppy trading in the pair as it does not seem to be knowing in which direction it should move ultimately. We believe that this kind of price action would continue for the short term as the market goes into a slumber on account of the holidays and the New Year. We are going to be stuck in this consolidation for now and the traders need to get used of this.

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Looking ahead to the rest of the day, we do not have any major news from the US or Canada for the day and so it is safe to say that we can expect the choppy price action to continue for today.

This article was originally posted on FX Empire

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