USD/CAD Daily Fundamental Forecast – June 20, 2017

USDCAD continues to lounge about at the lows of its range as the pair tries to recover and create a bounce in price from nowhere. With the BOC being determined to help in the economic turnaround, it is going to be very difficult for the bulls in this pair to create any sort of decent bounce and any bounce in this pair should be viewed as an opportunity to sell this pair rather than being viewed as a change in trend.

USDCAD Continues To Trade Weakly

The oil prices continue to trade near their range lows and continue to look weak but despite this, we are seeing the CAD doing well and trading very strongly. It would probably require the oil prices to recover for the CAD to gain another round of strength in the short term and that would be the time when we are likely to see the pair make a serious attempt at breaking through the important psychological round figure value of 1.3000.

Ever since the pair broke through the important region of 1.3500, the pair has been trading weakly and we have been mentioning this in our forecasts as well. The break through that region represented a change of trend as far as the pair is concerned and to see that this is happening despite the weakness in the oil prices and also despite the strength in the US dollar should give a sense of this turnaround and how significant it really is. The data from Canada has shown a clear uptrend in the economy and the BOC has expressed a willingness in supporting the same.

Looking ahead to the rest of the day, we do not have any major news from Canada and the US and hence like yesterday, we can see some consolidation on either side of 1.3200 for the day today.