Senate has failed to pass Trump's Healthcare act to replace Obamacare. This is a major defeat for Trump and we should a delay for Trump to push forward Trump's healthcare act. This news came out to be negative USD, putting pressure on USD which is already beaten down. Due to investors forsaking USD and a quiet US session, we see other currencies such as AUD, CAD and EUR strengthening against USD.
BOC has recently hiked interest rates by 25 basis points, the first time in past 7 years. BOC governor cited that interest rates will be higher, this is in light of positive data, with recent data on the economy being positive and BOC target levels within reach.
On the other hand, we noted the weakness of USD in our previous article, with the possibility of september rate hike unlikely.
Given the strengths of CAD and weakness of USD, trading USDCAD in favor of the downside is the best option at the moment.
The future belongs to those who believe in the beauty of their dreams.