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USD/CAD Daily Fundamental Forecast – December 13, 2017

Colin First
Updated

The USDCAD pair is still trying to work its way higher and by the look of things, it has not been making a great job of it. The prices continue to chop around the 1.2850 region for the last 24 hours with no significant progress being made. It remains to be seen whether there will be any breakout today.

USDCAD Looking to Breakout

The focus would be on the dollar for today as we have the inflation data in the form of CPI from the US and we would also be having the Fed rate annoucement and statement. Most of the market expects the Fed to hike rates today and this has already been priced into the markets. So, if the hike does happen, we do not expect too much of a reaction in the markets for today. What would gain attention of the traders is the statement following that as well as the CPI data.

USDCAD Hourly
USDCAD Hourly

With the Fed making it clear that the rate hikes in 2018 would be depending on the incoming data from the US, we are likely to see the inflation data gain prominence as it needs to remain high for it to be viable to hike rates. Also, the rate statement is also expected to touch upon this topic and if the Fed continues to be hawkish for further rate hikes, then we could see the dollar go on another strong bull run which should help the pair to break through the highs of its range.

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The CAD has been under pressure as the oil prices have fallen over the last 24 hours. The CAD is not likely to receive any fundamental support as there are no economic news to be released from Canada for today or for the rest of the week. It is all up to the dollar to decide which way it wants to go.

This article was originally posted on FX Empire

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