USD/CAD Daily Fundamental Forecast – July 10, 2017

It was a kind of a stalemate in the USDCAD pair on Friday as the employment data from both the US and Canada came in stronger than expected and this led to a period of consolidation rather than any major rise or fall. Comparatively, the data from Canada was better but it must have come as a big relief to many of the dollar bulls that there was finally some relief on the data front after the data from the last few weeks had been very weak.

USDCAD Still Under Pressure

This has helped to stabilise the pair for now and we can see that the pair is consolidating on either side of 1.29 as of this writing. We are also seeing the market waiting in anticipation of the Canadian news later in the week when the BOC is expected to hike rates. Though most of the rate hike is already priced into the markets, on ample signals from the BOC, what will interest the markets is the accompanying statement and the following BOC conference where the traders would be looking for hints from them on when the next rate hike would be.

On the other hand, the dollar bulls finally got to see a turnaround in the economic data from the US as the NFP data came in better than expected. Though this is only the beginning, the dollar bulls would hope that the US economy is able to build on this and push through with better data in the weeks ahead which would make the decision for the Fed easier.

Looking ahead to the rest of the day, we do not have any major economic news from the US or Canada for the day and so we can expect some consolidation on either side of 1.29 during the course of the day as the markets continue to digest the news from last week.