USD/CAD Daily Fundamental Forecast – October 3, 2017
The USDCAD pair continues to trade near the highs of its range and it has been doing so for the past few days. The dollar has been holding steady against most of the other currencies and that is also beginning to tell on this pair as well. The CAD has been one of the strongest currencies around but the comments from the BOC Governor Poloz saying that he doesnt seen any timeline for the next rate hike has rattled the CAD bulls.
USDCAD Challenging Range Highs
This has put a lot of pressure on the CAD and this can be seen in the way that this pair has been moving higher over the last few days. For now, there is a struggle going on between the bulls and the bears for quite sometime and a we had mentioned in our forecasts, we are in a region of high importance which could determine the short term direction for this pair and that is why we are seeing the ranging and the consolidation in this pair for quite some time now.
Your capital is at risk
Yesterday, the pair once again tried to break higher on the back of weaker oil prices. Apart from the BOC, the stronger oil prices have also been supporting the CAD in recent times and this has also been useful for the bears in this pair to take control over the last few weeks. But with the oil prices hitting a region of strong resistance and with the dollar also gaining strength, we are likely to see the rebound in the pair getting stronger.
Looking ahead to the rest of the day, we do not have any major news from the US or Canada but we expect the pair to continue to challenge the range highs for today as well. The market is preparing for much larger news in the later half of the week with the employment reports lined up and this is likely to determine the short term direction.