The USD/CAD pair was little changed on Tuesday, where the U.S. dollar slightly rose against majors, while commodity prices eased, nevertheless, a crushing victory by the Conservative party in the elections helped the Canadian dollar to gain momentum, and accordingly, the USD/CAD pair was little changed.
The USD/CAD pair could still rise given that the strength of the U.S. dollar prevails, nevertheless, any gains for the pair will be limited over the short term, since our medium term outlook is still favoring the USD/CAD pair to drop, especially after Conservatives had won the elections, which is perceived as a strength for the Canadian dollar, and will push the USD/CAD pair to the downside.
Wednesday 12: 15, the United States will release the ADP Employment Change report for the month of April, where the ADP employment is expected to show that U.S. private employers added 193,000 jobs in April, compared with the prior reported rise of 201,000 added jobs back in March, the ADP reports is important since it’s released two days ahead of the Non-farm payrolls.
Wednesday 14:00, the United States will release the ISM Non-Manufacturing (Services) index for the month of April, where the ISM Non-manufacturing index is expected to rise to 57.5 in April, compared with the prior estimate of 57.3 reported back in March, where the recovery in the services sector seems to be picking up some pace.
Written by ForexMansion.com