USD/CAD Daily Fundamental Forecast – March 12, 2018

The USDCAD pair moved lower during the course of trading on Friday and this is just a continuation of the overall ranging in the pair that we have been seeing over the last few weeks. The bullish momentum has taken a backseat for now and that is one of the reasons why the pair has been moving backwards. We will have to see whether this is going to be a full reversal or whether the pair is going to start moving back higher again.

USDCAD Moving Lower

Last Friday was a day of large economic releases and hence it was expected that the pair would be subjected to a lot of volatility due to the release of the NFP data from the US and also due to the release of employment data from Canada as well. The data from both countries came out in a strong manner and it led to the strengthening of both the currencies. But the dollar was pushed slightly on the backfoot due to the fact that the average wage earnings has been lesser than what was expected.

This led to the belief that the jobs that were added to the US economy were all low paying jobs which do not add strength to the economy as such. Also, we have been seeing that the BOC tends to be a lot more hawkish than the Fed and that is why the good data from Canada generally carries much more weightage than the same in the US and that is why we are probably seeing the CAD gain in strength since the release of the data and we are also seeing the pair moving lower back to the support region around the 1.28 price region.

Looking ahead to the rest of the day, we do not have any major economic news or data from the US or Canada and so we can expect some consolidation  nears the lows of the range. The support around 1.28 should hold for now.