USD/CAD Daily Fundamental Forecast – March 24, 2017

USDCAD continues to trade within a range as it has been doing for the past few days. It seems to be caught in a very tight range between 1.33 and 1.34 and has been trading within that range over the past several days. The Canadian dollar is trading weakly as the oil prices continue to loiter below the $50 mark. The economy also has not shown any great signs of improvement which has made the BOC to paint a sober outlook for the economy going forward.

USDCAD Still Trades in Tight Range

The dollar is also on the backfoot as we enter into another new chapter in the Trump saga with the healthcare bill. This new healthcare plans seeks to overturn the existing Obamacare as Trump wants to stamp his authority on this sector and also seeks to fulfill one more of his campaign promises. But he seems to suffer from a lack of support from his own party over the bill and so the last few days have been spent on negotiations by the Trump administrators over this issue.

Voting on the bill was supposed to take place yesterday but it looked as though the Trump team was not able to collect the required support even though the negotiations carried on late into the day. This has forced the team to postpone the vote today and if reports are to be believed, his team are done with the final stage of negotiations and there is likely to be a vote today irrespective of whether there is support or no support.

This is the reason why the USDCAD pair has been moving sideways over the last 24 hours as it waits for the vote. If the Bill goes through, then it should be dollar supportive. We also have the CPI data from Canada for today and this also will give hints on the status of the Canadian economy.