Yahoo Finance USD/CAD Price Forecast – Pair Moves Higher on Strong Dollar
The USDCAD bulls are once again back in business as the dollar strength has been dominating the market headlines over the last few days. This is set to continue in the short term and hence it would not be a surprise if the prices begin to move towards the 1.35 region in due course of time.
USDCAD On a Roll
The move higher has been triggered by the rate hike from the Fed, which was expected but on the other hand, the Fed sounded much more hawkish than what was expected. This has led to the belief that more rate hikes are on the way as well and the market estimates that there would be 2 more rate hikes during the rest of the year and it is this belief that is being priced into the markets at this point of time. We believe that as long as the incoming data supports the US economy, this should only be a mere formality and that is why we believe in this uptrend.
The CAD, on the other hand, has been hit hard by the threat of a trade war and if and when that truly breaks out, then Canada would be one of the countries that suffers a lot from the same. The CAD is under pressure due to this possibility and that is also one of the reasons why we are seeing the USDCAD pair move higher over the last couple of weeks or so. The pair is not just below the 1.32 region as of this writing and it is likely that we might see some consolidation.
This is likely to be the case for today as well as there is not much by way of fundamentals or economic data during the first day of the week which is today. We can expect some consolidation and probably some correction as well as the bulls prepare for the next assault.
This article was originally posted on FX Empire
