USD/CAD Daily Fundamental Forecast – September 18, 2017

The pair has been trading within a tight range over the past couple of trading days due to the lack of much news and fundamentals to push the pair in either direction as yet. There has been a slight increase in the bullishness of the dollar but this has been easily compensated by the strength in the oil prices which has helped to support the USD.

USDCAD In Tight Range

The dollar has been holding comparatively steady over the last couple of days as the incoming data has been pretty choppy but shows signs of strength in the short term. We also have the FOMC meeting later in the week and the market has a lot of expectations, as usual, from this meeting as it hopes to see signs and timelines for the next rate hike. The dollar is also getting some support from the actions of Trump with him reaching out to the opposition to get some of his reform bills passed.

The CAD, on the other hand, has been boosted by the oil prices but what should make the CAD bulls happy and confident is the support from the hawkish and decisive BOC which, unlike other central banks, has been pro-active with respect to things associated with the economy and rate hikes and have been lending some good support for the CAD.

Looking ahead to the rest of the day, we do not have much news from the US or Canada scheduled to be released for the day but the week is likely to be dominated by the FOMC which the market is looking forward to. On the other hand, we are seeing some consolidation near the support region for the USDCAD pair which may be a preparation for a good bounce in the short and medium term. Traders should be careful about this.