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USD/CAD Daily Fundamental Forecast – January 19, 2018

The pair has continued to move lower during the course of the last 24 hours as the weakness in the dollar continues to be the focus in the markets. The oil prices have also moved lower during the same period but that does not seem to have affected the CAD too much as the weakness in the dollar seems to be much more stronger.

USDCAD Under Pressure

The pair had been in consolidation during the first half of the day yesterday but towards the evening, the pair began to weaken as reports came in about the shutdown in the US which Trump and his team were trying to desperately to deal with and get the Bills passed through the Senate. This was bad news for the dollar as there was uncertainty on whether they would be able to push it through the Senate on time and this has led to a dollar sell off so far.

USDCAD Hourly
USDCAD Hourly

The pair now trades in the 1.24 region as of this writing and with the lack of any major fundamental news in the short term, we can safely expect the pair to continue to remain weak. We have been mentioning in many of our forecasts over the last few days that any bounce in this pair should be viewed as an opportunity to go short on this pair as it is clearly under the grip of the bulls and thats what we have seen so far.

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We believe that some more weakness is in order in this pair but as it gets more and more lower, the risk of a correction increases and the prices could snap back at any point of time. There are no major news from the US or Canada for the rest of the day today and we advise the traders to trade with strict stop losses to avoid any corrective bounces.

This article was originally posted on FX Empire

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