Fundamental Drivers: USDCAD Forecast

In the upcoming week, our focus shifts to USDCAD, where we're eyeing a potential buying opportunity around the 1.34300 zone. Currently, USDCAD is entrenched in an uptrend but is undergoing a corrective phase as it nears the 1.34300 support and resistance area. Adding a fundamental layer to this analysis, recent hot CPI and PPI data in the US underscore the potential upside for USDCAD. The robust Consumer Price Index (CPI) and Producer Price Index (PPI) numbers suggest strengthening inflationary pressures in the US economy, which could buoy the USD against the CAD. This fundamental backdrop aligns with our technical analysis, supporting the notion of a buying opportunity in USDCAD as it navigates its correction phase.

Trade safe,
Joe.