USDCAD Pair Continues Its Consolidation

It was a slow day last Friday and it is likely to be a slow day today as well as large parts of the world continue to be on holiday due to Easter Monday. Most of the traders would be out on a long weekend and hence it is not logical to expect any major kind of moves today.

USDCAD in Range

The dollar seems to be having a bit of a upper hand across the market in general but it can be safely said that the USDCAD pair is back in range with neither the bulls nor the bears in control. What had appeared to be a major breakout just a couple of weeks back is confirmed have fizzled out by now and now what we are seeing are just small move sin anticipation of a trend emerging sooner or later. For now, the pair consolidates awaiting the next direction.

The dollar is likely to go on the backfoot in the short term as the anticipation over the rate hikes begins to slow down and it is going to take a bit more time for the market to generate the next round of bullishness for the dollar. The question now is whether the Fed would hike the rates twice more or thrice more for the rest of the year and with the 2 rate hikes for the rest of the year already being priced into the markets, the traders would be waiting for more hints of things to come before they jump into specific trades.

The traders and investors are also likely to wait till the end of the week to watch the employment reports from the US and Canada before they decide to push the pair in any specific direction and hence, we would not be surprised if the pair continues its consolidation under the 1.30 region till that time.