USD/CAD Daily Fundamental Forecast – August 1, 2017

The USDCAD pair seems to have completed its brief bounce and seems to be moving back to its trending ways as of this writing. The pair did try to do a bounce over the last 24 hours and it is to its credit that it managed to stay above the 1.25 mark for as long as it did. The region here has been a tough nut to crack so far for the bears but they continue to try and we believe that it is only a matter of time before they are successful.

USDCAD Continues to be Under Pressure

The pair went over the 1.25 region for a brief amount of time yesterday in what was a repeat of the price action from the day before. But just like the previous day, the pair could not hold on to that region for long. There was no economic event in the US or Canada for the day to drive the prices but the developments in the White House continue to dominate the headlines and keep the dollar weak. Yesterday, we saw the communications director being fired by Trump just a week after taking over and this continues the uncertainty and confusion that has plagued the Trump office ever since he took over.

This has helped to keep the dollar under pressure and so far, there has not been any kind of respite for the dollar as it continues to be hit from all fronts. The dollar bulls would be hoping for some turnaround as they await employment news later on in the week and we are likely to see Canadian employment news as well towards the end of the week which should guarantee a lot of volatility in this pair.

Looking ahead to the rest of the day, we have the PMI data from the US later in the day but that is unlikely to reverse the downtrend for now. We expect the pair to continue to trade under pressure for the day.