The USD/CAD has found some tranquility in the past few hours after yesterday’s surge higher when U.S inflation numbers propelled the currency pair upwards.
(Click on image to enlarge)The higher than anticipated Consumer Price Index numbers from the U.S yesterday likely caused most USD/CAD short sellers agony as they watched their positions turn into losses. The apex values touched however, hit values seen on the 13th of December. While financial houses globally proved they are nervous about what the U.S Federal Reserve will do this coming spring, it appears they are still positioned for an cut. At this juncture it can be argued the Fed needs to change its rhetoric once again and start to lean towards a more aggressive sounding monetary policy for the mid-term. Tomorrow and Friday will add to near-term nervousness with U.S new data reports. Calm Seen After Highs Hit in the USD/CADThe USD/CAD has shown the ability early this morning to trade a bit lower. The currency pair has mirrored the as some weakness in the USD has emerged early today. No, the USD/CAD is not going to suddenly move violently downwards. Traders will likely have to deal with the higher value range which has been created over the near-term. But speculative traders may believe are interesting as technical ratios to consider some selling wagers, but they should keep in mind coming U.S economic data.The 1.35000 to 1.36000 price range can be assumed technically to offer a wide road map of current probabilities for the USD/CAD. However speculators will want a more precise price territory to look at and may consider the 1.35200 to 1.35700 ratios as potential low and high values. There are no guarantees and traders will need to practice t the remainder of this week. U.S Data Coming Tomorrow and on Friday for Speculators
Canadian Dollar Short Term Outlook:
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