Latest: USD/CAD Forecast May 23-27

The Fed meeting minutes were surprisingly hawkish, putting a June rate hike firmly on the table. The US dollar posted strong gains and pushed the Canadian dollar down sharply. US employment and housing numbers were solid. In Canada, retail sales and inflation numbers were soft.
Updates:

• May 23, 7:33: CAD: Breaking The Chain With Oil; Where To Target? – CIBC: The Canadian dollar has shown a lot of weakness lately. Will this continue? Here is the view from CIBC: Here...

USD/CAD daily graph with support and resistance lines on it. Click to enlarge:

1. Overnight Rate: Wednesday, 14:30. The BoC has held interest rates at 0.50% since July 2015. The markets are expecting the rate to remain the same, but will be combing through the rate statement, looking for clues regarding the BoC’s future monetary policy.
2. Corporate Profits: Thursday, 12:30. Corporate Profits have struggled, posting four declines in the past five quarters. In Q4, the indicator posted a decline of 3.1%. Will we see a rebound in the Q1 report?

USD/CAD Technical Analysis
USD/CAD opened the week at 1.2946 and touched a high of 1.3161. The pair then reversed directions and dropped to a low of 1.2836, a support held firm at 1.2780 (discussed last week).  USD/CAD closed the week at 1.3115.

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