USD/CAD in limbo before rate hike decision

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Inflation or lack thereof is the main domestic justification for not rising rates so any wording change that suggests the Fed expects a slower return to the 2% target would give off a dovish vibe." 
- CMC Markets (based on WBP Online)


Pair's Outlook 
The USD/CAD currency pair was on its way to the weekly R2, but the extremely worse-than-expected Canadian Building Permits weakened the Loonie, allowing the given pair to climb 24 pips higher. With the upcoming FOMC Meeting Minutes, tension is rising, but keeping the Greenback mostly unchanged, as a lot of uncertainty dwells in the market. The Buck might return under the 1.29 level, ignoring the immediate support, if the Fed postpones the rate hike till 2016, whereas reassurance of a 2015 one is likely to trigger a rally, negating this week's losses.

Traders' Sentiment
Bears now dominate the market with 51% of short positions. The percentage of orders to buy the Buck remains unchanged at 63%.
© Dukascopy Bank SA

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