The USD/CAD pair might raise in the next period, according to our technical and fundamental analysis. A potential target is 1.3124 (0.61 Fibo) on the daily chart.
The interest rate is critical in determining the economic outlook. In the U.S., the current federal funds rate is 1.75 percent. The Federal Reserve said it will raise rates to 2 percent in 2018, 2.5 percent in 2019 and 3 percent in 2020.
On the other hand, the economy of Canada performed slightly weaker than the bank expected in the first three months of 2018, the Central Bank of Canada said. The bank said weakness in the housing market plus trade uncertainties are weighing on the economy's prospects. However, it expects a boost from increased foreign trade, plus higher wages for Canadians.
The main economic data of this week:
Canada GDP MoM (+0.3% expectation); ( -0.1% previous)
FOMC rate decision (+1.75% expectation); ( +1.75% previous)
US NFP (+194k expectation); (+102k previous)
Unemployment rate (+4% expectation); ( +4.1% previous)