USD/CAD Daily Fundamental Forecast – December 11, 2017
The USDCAD has been trading in a steady manner today and also on Friday as there has not been much fundamental change in the markets during this period. The NFP data came in stronger than expected and this led the market higher on Friday but it remains to be seen how long this strength in the dollar would be able to hold and whether there would be a correction in the near future.
USDCAD Moves Higher
The focus on Friday was on the employment report from the US and the NFP data came in stronger than expected which helped the pair to move towards the highs of its range. But once again, the break through the highs was not very strong and it did not appear as though the breakout would hold. For a range that has been existing for around 2 months now, a breakout would have been much stronger and quicker but none of these seem to be happening in the pair and hence we were not confident of the breakout.
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As expected, there was no follow through on the breakout and the pair continues to trade within the highs of the range as of this writing. But it has to be noted that there is a huge amount of news and events that are scheduled for the rest of the week and we could probably see a breakout in the pair if it was favorable to the dollar. The Fed is expected to hike rates but we have to note that this is already priced into the markets.
Looking ahead to the rest of the day, we do not have any major news from the US or Canada for the day and hence we can safely expect the consolidation to continue near the highs of the range for now.