USDCAD Daily Fundamental Forecast – 16 February , 2017
USDCAD continues to be under severe pressure, something which has been happening over the last couple of weeks and the bulls are trying their best to resist the pressure. They have managed to hold it off so far but how long they can hold this support region remains to be seen.
Yesterday, we had a slew of data from the US which affected the strength of the dollar and led to a lot of volatility. We had the retail sales and the CPI data and though, on the face of it, both of it were much stronger than expected but on a closer look, it revealed that the average wages had dropped by a long way. This was a similar concern when the average wage data was released along with the NFP and yesterdays data only seemed to confirm the worst fears. So, immediately after the release of the news, we saw the USDCAD pair break above 1.3100 for a brief while but later on, as the market released the weakness in the wages, the sell off of the US dollar began and it pushed the pair back below 1.3100 and it trades just above the support region at 1.3060 as of this writing.
The battle lines have been clearly drawn between the bulls and the bears but apart from the unemployment claims data from the US, there isnt much by way of economic data from Canada or the US today. So, we expect the battle to continue today which should keep the USDCAD pair within a tight range between 1.30 and 1.31 for the rest of the day.