USD/CAD Daily Fundamental Forecast – August 4, 2017

The USDCAD pair has consolidated near the highs of its range over the last 24 hours as the market awaits the important economic news later on in the day. While most of the market awaits the NFP to see what kind of an impact it will have, it is an extra special day for the CAD as the employment report for Canada also gets released at the same time as the NFP and this is likely to bring in a lot of volatility in the USDCAD pair.

USDCAD Awaits News

The pair has bounced from the lows of its range near the 1.24 region over the course of the week and it has to be said that the bounce has been quite strong despite the fact that the oil prices have been growing stronger. Though the dollar has staged a bit of a recovery across the markets, nowhere has the recovery been as strong as the one seen in the USDCAD pair and this should give a lot of confidence for the bulls.

On the other hand, we have seen the pair fall over a 1000 pips over the last few weeks and it was only natural for it to stop somewhere and bounce. We had also mentioned if ever there was to be a bounce in the short term, it had to happen in the 1.24 region and that is what we have seen now. Now, we look forward to the employment reports from both the US and Canada to let us know what direction the short term will lead to.

Looking ahead to the day, we expect the pair to consolidate at the highs in the lead up to the news and then the direction after that would purely depend on the news. We expect the downtrend to continue in the short and medium term as the Canadian economy has proved to be quite strong of late and we expect that to continue.