High level trade talks will begin in Washington today and sources claim that the Chinese delegation is willing to work out a partial trade deal. Markets rallied yesterday after the comments were leaked, but the Trump administration has repeatedly ruled out a partial trade deal. New tariffs are set to kick in on October 15th 2019 and conflicting reports for today’s negotiations have already caused a spike in volatility. Forex traders will also receive inflation data and two reports on the labor market. How will this impact the USDCAD? Today’s fundamental analysis will take a look at the downside potential as well as the upside risk in this currency pair.

Canadian housing data will be released today, but the majority of traders will pat attention to trade talks between the US and China. Canadian elections will also start to impact trading decisions in the short-term, election day is on October 21st 2019. Oil prices have retreated from its price spike which gave traders another excuse to take profits in the Canadian Dollar. How will the USDCAD react to today’s economic data? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.