The USDCAD has been rebounding and recovering in a slow and steady manner over the last 24 hours as the pair has been hit heavily over the last week due to the weakness in the dollar. It is only over the last couple of days that we are seeing the dollar on the road to recovery though it remains to be seen how long this would last.
USDCAD In Range
It is going to be some choppy time for traders in this pair as they are going to find it difficult to get a grasp of the market, howmuchever they would be willing to give it a try. They have been finding it difficult to get a grasp on what the market is trying to do over the last few weeks as the Fed statement followed by the US tariffs has rocked the dollar markets. The dollar has been swinging this way and that ever since these news events rocked the headlines despite the fact that the Fed has been doing its best to support the dollar as much as the economic data is allowing them to do so.
The Fed has already hiked rates once and it appears as though they would be willing and keen to hike the rates a couple of times more during the course of the year but as usual, the market expects them to do more. The geopolitical tensions caused by the actions of the US government has not helped matters in any aspect at all and it is only now that the dollar has been able to recover in a slow and steady manner from all these blows. But we believe that this is only temporary and that this should give way to even more choppy trading in the coming days.
Considering this, it would be difficult for the traders to pick a specific direction in this pair for the short term and hence it would be advisable for the traders to stay away and watch the action from the sidelines till the dust settles down.