We’ve arrived at the last trading day of the year for FX traders in 2018 (even though FX markets are open from Wednesday 26 till Friday, 28th December; for an overview of the Trading Hour Schedule for the 2018 Christmas & New Year Holiday Period click here), will be interesting for USDCAD traders. After the FED decision on Wednesday, and the dovish hike which wasn’t as dovish as some market participants may have expected, while WTI kept on tumbling, reaching its lowest levels since 2017, the USDCAD FX pair stabilized slightly below 1.3500, and around its yearly highs.
Source: Economic Events 21 December 2018 – Admiral Markets’ Forex Calendar
If data sets for Canadian retail sales and GDP come in below expectations, as inflation data for November on Wednesday already did, Loonie traders would find another reason why the BoC could keep interest rates at the current level next month, leaving the advantage in USDCAD on the side of the bulls. In general, the overall device in the USDCAD pair seems to be to “buy the dip”, and as long as USDCAD trades above 1.3150, and further gains with a target around the 2017 early highs of around 1.3780 over the next weeks have a high probability to be seen.
Source: Admiral Markets MT5 with MT5SE Add-on USDCAD daily chart (between 21 September 2017 to 20 December 2018). Accessed: 20 December 2018 at 11:00 PM GMT — Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2013, the value of the USDCAD increased by 7.1%, in 2014, it increased by 9.4%, in 2015, it increased by 19.1%, in 2016 it fell by 2.9%, and in 2017 it fell by 6.4%, meaning that after five years, it was up by 26.8%.
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