USD/CAD Daily Fundamental Forecast – November 20, 2017
USDCAD continues to trade near the highs of its range as the pair seems to be stuck within a range with the strength of both the USD and the CAD waxing and waning in tandem leading to a sort of deadlock in the pair which has forced the pair to consolidate for quite some time now.
USDCAD Continues in Range
Even the slew of data that we have been having since the beginning of the month from both the US and Canada has not done much in pushing the pair through the range and thats why we are seeing the pair moving between 1.26 and 1.28 for much of this period. We believe that this kind of ranging and consolidation would continue to happen over the short term as we move towards the end of the month of November. We could see some volatility this weeke around the FOMC minutes which the markets would be looking forward to.
The traders would be watching the minutes to see if there are any hints being dropped about the rate hike from the Fed next month. So far, the data has been choppy and we have also seen that the Fed members have kept their cards close to their chest and at this point of time, the market is not yet sure on whether they would go ahead with the hike. But we believe that they would do so and hence believe that the pair would begin to move up in the medium term.
Looking ahead to the rest of the day, we do not have any major news from the US or Canada for the day and hence we can expect this consolidation to continue for the rest of the day as the focus is firmly on the euro for the day due to the troubles for the Merkel government over there.