Fundamental Analysis of USD/CAD for July 12, 2017

USD/CAD non-volatile bearish trend is still intact after getting some little bullish intervention recently. CAD has been quite dominating over USD and it seems to continue further in the coming days. Today is a very important day for both CAD and USD as a good amount of high impact economic events are going to be held today. Today BOC Monetary Policy Report is going to be published which provides valuable insight into the bank’s view of economic conditions, inflation, key interest rates and monetary policy. Along with it, CAD Overnight Rate is expected to show a rise to 0.75% from previous value of 0.50% which is expected to bring a good amount of volatility in the market and if the rate hike happens as per last few weeks prediction then CAD is expected to gain further over USD in the coming days. After the Overnight Rate decision, BOC Press Conference will be held today discussing the recent Rate Decision, Inflation and Monetary Policy of the economy. On the USD side, today FED Chair Yellen is going to testify about the Interest Rate and Monetary Policy. Later Crude Oil Inventories report is also going to be published which is expected to show less deficit at -3.2M which previously was at -6.3M. To sum up, as CAD already has an upper hand over USD and due to positive expectation of the interest rate decision today there is higher chance of CAD gaining more over USD in the future. A good amount of volatility is expected to hit the market as both currencies in the pair has high impact events which may lead to uncertain spikes in the market.

Now let us look at the technical view, the price is currently heading towards 1.2830 support level with impulsive bearish pressure already existing in the market. Recently price has shown some bullish intervention but it was quite minimal ahead of interest rate decision today. As the price remains below 1.30 bearish pressure is expected to continue and if price breaks below 1.2830 with a daily close then the price is expected to reach 1.2650 support level in the future.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Fundamental Analysis of USD/CAD for July 12, 2017