USD/CAD Daily Fundamental Forecast – March 29, 2017

USDCAD continues to be caught within a tight range and in a consolidation mode and it has chosen to completely ignore the volatility that we are seeing in the other pair ever since the beginning of the week. Over the last couple of days, we have seen the US dollar completely weaken all across the board on the first day on the back of the failure of the Trump team to bring the new healthcare bill to a House vote.

USDCAD Continues in its Boring Range

This weakness was seen in many pairs as the bulls in those pairs took full advantage of this and pushed the respective pairs higher and higher against the USD. But even while this was happen, we saw that the USDCAD pair was stuck in a range between 1.33 and 1.34 without much weakening happening.

Then, yesterday, we saw the reversal of the entire move from the previous day as the US dollar gained in strength across the board as there was a glimmer of hope again for the Trump team over the healthcare bill which they seek to push through using the help of some of the Democrats. This helped to strengthen the dollar but still USDCAD continued to trade and we now see the pair trading just below 1.34 as of this writing.

Over the last 24 hours, we also had the BOC Governor Poloz making a speech but he chose not to touch upon the monetary policy and hence, there was no push for this pair on either side. Looking ahead to the rest of the day, we have the oil inventory data from the US and we have seen the oil prices trading strongly over the last couple of days which seems to be the only fundamental event that is helping to hold up the CAD. Expect some more consolidation and ranging in the USDCAD pair for the rest of the day.