USD/CAD Looking Ahead to an Important Day
The eyes of the market for today is likely to be firmly on the CAD with a string of data being scheduled to be released from Canada later in the day. The USDCAD is likely to be highly impacted during this time and it is important that the traders do not get caught in between and allow the dust to settle before they jump into their trades.
USDCAD Choppy
The USDCAD has been quite choppy over the last few days with no specific direction as the traders were not quite sure of what to make of the various fundamental developments. We have been seeing the dollar go from strength to strength on the back of some strong incoming data from the US. This has helped to correct the trend of weak data that we have been seeing from the US over the last few weeks and has helped the dollar to recover over the last few days.
But none of this seems to have had much of an impact on the CAD which has continued to remain strong due to the strong oil prices and also due to the increasing anticipation that the next rate hike from the BOC would be around the corner which can be justified by the fact that the recent data from Canada has been quite strong. On the other hand, we are going to see the inflation and retail sales data from Canada later in the day today and these would be 2 important parameters that would be looked at closely by the BOC for their rate decision.
Looking ahead to the rest of the day, we could be looking at a situation where the CAD could get even stronger from where it is now and this could bring the 1.28 region under a lot of pressure and could bring the 1.25 region as the focus for the bears. On the other hand, some weak data could open up 1.30 and further.
This article was originally posted on FX Empire
