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USD/CAD Daily Fundamental Forecast – December 18, 2017

By:
Colin First
Published: Dec 18, 2017, 10:58 UTC

USDCAD awaits the passage of the tax reform bill through the Senate which should then see the pair moving through 1.29

USDCAD Monday

The USDCAD pair got a boost late on Friday due to developments in the US surrounding the tax reform bill which helped the dollar to strengthen all across the board during the period. That momentum seems to be carrying over for today as well as we see the pair continue to trade near the highs of its range as we await the US session which could see some fireworks.

USDCAD Looking to Move Higher

The dollar had been on the backfoot for much of the last week as there were no fundamental drivers for the dollar strength with the focus being on the euro and the pound. The Fed also did not do much to support the dollar as they sounded dovish for the rate hikes next year, even though they did hike rates last week. So, the pair had moved below the 1.28 region over much of the last week and it looked as though it was set to move back to the lows of its range.

USDCAD Hourly
USDCAD Hourly

But the developments surrounding the tax reform bill has been able to push the prices higher as more and more Senators seem to be giving the much needed support for the bill. It is likely that the bill would be passed sometime during the early part of this week and when that happens, the dollar is likely to get another dose of buying frenzy which should be able to lift the pair towards the 1.29 region.

Looking ahead to the rest of the day, there is no major economic news from the US and Canada for the day and so the only point of interest would be the path that the tax bill takes. It should only be a matter of time before it is passed and hence it will be watched with keen interest. A smooth passage should lead the pair higher through the 1.29 region.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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