USD/CAD Daily Fundamental Forecast – November 24, 2017

The USDCAD pair continues to trade within the range of 200 pips and the same was seen over the last 24 hours. The strength of the USDCAD pair has been waxing and waning over the last few weeks and that is why we have been seeing the pair moving up and down through its range with no possibility of a breakout as yet. Even heaps of news from both the US and Canada have had little impact on the prices.

USDCAD Moves Higher on CAD Weakness

Yesterday, it was a holiday in the US on account of Thanksgiving and hence the liquidity in the pair was expectedly low. The pair had been hit by the weakness in the dollar which was brought about by the dovishness of the FOMC minutes and it looked as though the pair might sink towards the lows of its range in due course of time. But we had the retail sales data from Canada yesterday and it came in much weaker than expected. The sales had come in weaker last month also and though it was revised higher yesterday, the data missed the expectations for this month.

This led to a weakening in the CAD which has since pushed the pair higher towards the 1.2750 region and we believe that the move would have been much bigger had it not been a holiday in the US. It remains to be seen how the market would react when the US traders come out in full force on Monday but so far, the pair continues to trade within range. The CAD was helped a little bit by the higher oil prices which continue to move up in recent times.

Looking ahead to the rest of the day, we do not have any major news from the US or Canada for the day and so we can safely say that the consolidation and the ranging is likely to continue for today as well. This is likely to go on for some more days as well as there are no signals of a breakout as yet.