USD/CAD Rate Carves Lower Highs & Lows Ahead of Fed Meeting

USDCAD

Fundamental Forecast for Canadian Dollar: Neutral

USD/CAD bounces back from the weekly-low (1.3049) as the above-forecast print for U.S. Non-Farm Payrolls (NFP) overshadows the 11.2K expansion in Canada Employment, but price action ahead of the Federal Reserve meeting raises the risk for a larger pullback in the exchange rate as it carves a fresh series of lower highs lows.

The Federal Open Market Committee (FOMC) interest rate decision on November 8 may influence the near-term outlook for USD/CAD even though the central bank is widely expected to retain the current policy as Fed Fund Futures continue to reflect expectations for a rate-hike in December.

USD/CAD Rate Carves Lower Highs amp; Lows Ahead of Fed Meeting

It seems as though the FOMC is sticking to the Summary of Economic Projections (SEP) as the central bank appears to be on course to raise the benchmark interest rate to a fresh range of 2.25% to 2.50% ahead of 2019, and Chairman Jerome Powell Co. may continue to strike a hawkish forward-guidance for monetary

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/cad/2018/11/02/USDCAD-Rate-Carves-Lower-Highs-Lows-Ahead-of-Fed-Meeting.html