USD/CAD Fundamental Analysis: March 13, 2017
The USD/CAD pair consolidated for the most part of last week’s session after breaking out during the previous week. The USD/CAD pair moved towards the 1.3500 barrier, which is the barrier that the pair bulls have been constantly trying to break through during the several previous sessions, with the pair’s last attempt to surpass this region resulting to the pair retreating significantly back to 1.3000 points. The bulls have become increasingly cautious of this particular region and this is part of the reason why the bulls have resorted to ranging and consolidating at just under this range.
Both the US and the Canadian economy released a string of economic data during the latter part of last week, with both the numbers and employment rates coming out at a much better rate than expected. This has then increased the probability of a Fed rate hike within the week and confirmed the positive economic growth for Canada. As a result, the USD/CAD pair was not subject to any drastic changes since both currencies cancelled out the other’s projected positive effects on the pair and on the market.
For this week, the US will be releasing its retail sales data, as well as its PPI and CPI data, in addition to the much-awaited announcement from the FOMC, which will determine whether the central bank has decided to implement an interest rate hike or otherwise. However, since the Federal Reserve is pretty much expected to increase its interest rates and have a hawkish statement. As such, the USD could possibly weaken following the FOMC rate announcement, a move which should be closely guarded by the USD/CAD pair.
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