USD/CAD Daily Fundamental Forecast – February 14, 2018The pair has been consolidating for the past 2 days but that is likely to change today with some major data being released from the US
The USDCAD pair has been trading in a quiet manner over the last 24 hours as the pair seems to be waiting for something fundamental to come in or change. Since the beginning of the week, there has not been much of fundamental or economic news and this has been used by the dollar bears to push it lower across most of the currencies. We have seen it happen in this pair as well but not to the extent seen in the other pairs.
USDCAD Likely to be Volatile
This is due to the fact that the CAD itself seems to be in trouble due to weak oil prices and also due to the weak employment data from Canada which came in last week. This has put paid to the hopes of traders that the BOC would be hiking the rates another time pretty soon and this has placed the CAD on the backfoot. This is the reason why we are seeing the pair trading above the 1.2550 region as of this writing despite some serious dollar weakness that has been seen across the board.
The dollar is likely to get back into focus during the course of the day and for the rest of the week as there is a slew of data that is scheduled to be released over the next couple of days. This includes the PPI data, the inflation data and the retail sales data as well. All this is likely to have a major and direct impact on the dollar price and this is likely to push the dollar in either direction. We believe that this direction would be higher.
Looking ahead to the rest of the day, we do not have any major news from Canada but we have the inflation and retail sales data from the US and the traders would be watching this data very closely to see if the trend of strong data from the US, that we have been seeing over the last couple of months, is going to continue or not. If it does, then we should see the dollar gain back its strength and this should move the pair higher as well.