USD/CAD Daily Fundamental Forecast – September 26, 2017

The pair continues to move up in a slow and steady manner which is reflective of the strength in the dollar which seems to be increasing on a day to day basis. The pair now targets the 1.24 region and once that is cleared, we should see the pair moving through towards the 1.2470 region where it is expected to face a lot of resistance in the coming days.

The pair has been moving up despite the strength in the oil prices. The oil prices broke higher during trading yesterday and it looks extremely bullish for the short term. This normally tends to support the CAD as the Canadian economy depends a lot on the oil prices. But the USDCAD pair continued to rise during the day which is an indication of the strength of the dollar, which has been boosted by the comments from the Fed and also the incoming data as well.

Yesterday, we did not have much data in the form of economic news but the dollar was able to hold steady despite the threat from North Korea that it would attack the US planes even if they did not fly over the Korean airspace. This caused the stock markets to go on the backfoot but it did not seem to affect the dollar too much as it continued to trade steady and the USDCAD moved through the 1.3450 region.

Looking ahead to the rest of the day, we do not have any major news from Canada but we do have a major speech from Yellen. It remains to be seen whether she would touch upon monetary policy in her speech while the market would love to hear some more from her about it so that it can determine the next short term direction.