USD/CAD - fundamental analysis-May 7,2018
The pair continued to trade within a tight range and consolidate for another week.The pair had broken down through the 1.30 region which established the bears as being in control of the pair and since that time,we have been seeing the pair under pressure.The only major news of note last week was the employement report from the US in the form of NFP data.
In the coming week, we have the PPI and the CPI data from the US. All of these are likely to have a large impact on the pair in the short term.The dollar would continue to be strong as long as the incoming data does not miss the mark by much. The traders continue to believe that there would be atleast 2 more rate hikes from the Fed and as long as the economic data supports that view, we should be seeing the dollar being buoyed. The CAD could also gain in strength based on the employment numbers and that is why we believe that this pair, among all, is the one that is likely to range and consolidate for much of the short and medium term.