USD/CAD Daily Fundamental Forecast – September 14, 2017

The prices of USDCAD broke through the 1.2150 region during the course of the day yesterday but the pair could not make much headway beyond that. This keeps it under the risk of further correction in the short term which is likely to be determined by the data from the US later in the day today.

USDCAD Trying to Bounce

Yesterday, we saw the pair move higher on the back of some strength in the dollar. The dollar managed to recover across the board as the market seemed to like the way Trump was trying to reach out to the opposition is in his bid to push through some of his reform bills like the tax reform and the healthcare reform as well. It is clear that he does not have the full fledged support of his party and thats why it is important for him to seek support from the opposition.

This kind of move helped to build some buying in the dollar despite the fact that the PPI data from the US came in weaker than what was expected. This was enough for the pair to push through the 1.2150 region but the bounce has been shallow o far and does not constitute a major bounce as yet. It remains to be seen how far this bounce will go as the pair continues to trade above 1.2150 as of this writing giving it a chance of the bounce continuing further.

Looking ahead to the rest of the day, we have the CPI data from the US and no other data from Canada as such. This is likely to give an idea of the inflation in the US and hence a glimpse of the US economy as a whole and this is likely to watched with a lot of attention and hence lead to a lot of volatility as well.