USD/CAD Consolidates

USD/CAD has been trading to the downside since the beginning of May when price was about 1.38. Ever since, the price has been depreciating as the US dollar went on a losing streak against all its peers marking more than a year lows against the most prominent as the Euro and the Canadian dollar.

As to the USD/CAD pair, the price reached a low of 1.2485 a few days ago and is now trading at 1.25. Main trend continues to be bearish as market participants are shorting the Greenback with no signs of stopping.

What could either speed up or put a hold on the momentum is today's Fed interest rate decision. The Fed is expected to hold the current rate at 1.25% so according to some specialists, this would be a non-event for the long term development of the USD index.

Still, have in mind that high volatility may cause panic in the market that could probably fade away shortly after the event is over.

Chart: USD/CAD H4