The USDCAD pair continued to trade near the highs of the range as the consolidation and the ranging has been ruling the pair for quite sometime now. This is likely to end sometime today as we have a range of data being released from both the US and Canada during the US session which should bring an end to the consolidation.
USDCAD Waiting for Direction
The dollar was boosted yesterday by the news that the tariff plan that was proposed by the US administration ws highly watered down in due course of time, with large exmeptions for the neighbours like Mexico and Canada and hence this was what was finally signed by Trump. This was some relief to the markets who then pushed the dollar higher against most other currencies. But, this watered down version of the tariff plan seemed to help Canada as well and hence we saw the pair doing a balancing act.
This positive news for the dollar would have helped the pair to move up gradually but the positive impact on Canada and the data ahead today would have played on the minds of the investors and the traders and hence we saw too little reaction from the markets for this piece of news. The pair continues to trade just short of the 1.39 region as of this writing and the battle between the bulls and the bears has well and truly begun for the short term.
Looking ahead to the rest of the day, we have important news from both the US and Canada in the form of NFP from the US and the employment report from Canada and both of these are expected to bring in a lot of volatility in the pair. We hope to finally see a breakout in the pair in due course of time as the pair continues to search for direction in the short and medium term.
This article was originally posted on FX Empire
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