USD/CAD Fundamental Analysis: June 27, 2017 The USD/CAD pair remains confined within its previous trading range of 1.3200 and 1.3300 points as there were no major events yesterday that could have swayed the current stance of the loonie. As the US dollar has been gaining more and more momentum due to the release of a positive durable goods data, this has been subsequently countered by an oil price surge on the side of the Canadian dollar, and this is why the USD/CAD pair has been in a deadlock as these events have cancelled out the effects of one another. Oil prices are still consolidating within its price lows but tension within oil-producing countries has lent some additional support for oil prices, enabling them to surge at over $43 per barrel. Since the loonie is highly dependent on oil prices, the USD/CAD pair is then expected to increase subsequently in line with the increase in oil prices. The Fed chose to brush off the weak data coming from the US economy and still went ahead with its planned rate hike, but the market is not yet sure of the timing of the next rate hike since the dollar strength has not yet established itself as far as traders are concerned. This is why the market is now closely monitoring the incoming readings from the US in the short term in order to determine if the Fed is correct with its assumption that the US will be set to release a slew of positive data. If indeed these data comes out as positive, then the dollar strength should further increase as well. For today’s trading session, Janet Yellen is set to make a statement within the day but the USD/CAD pair is expected to remain consolidating within its previous trading range.