Overnight Range 1.3075-1.3115

FX markets had a tentative start to the week and traders appear to be lacking motivation ahead of Fed Chair Janet Yellen’s testimony to Congress on Tuesday.

USDJPY caught a bid in early trading after President Trump and Japan’s Prime Minister Abe appeared to have a cordial meeting. Mr. Trump reportedly did not discuss currency and he never tweeted about it either.  USDJPY rose from 113.44 to 114.16 initially only to retreat to the opening level in Europe.

AUDUSD and NZDUSD were directionless and bounced around in narrow ranges opening in New York unchanged from Friday’s close.

EURUSD slumped in Asia but rebounded in Europe, seemingly oblivious to comments from European Commission President Jean Claude Juncker that Britain could divide EU on Brexit talks

Sterling drifted higher throughout the session, underpinned by a modestly soft tone to the US dollar

Oil prices were on the defensive following the report late Friday of another increase in US rig counts. News out of London that Opec reported an 8.9 million barrel decrease in in crude oil production in January lifted WTI from $53.40/b to $53.71 as New York opened

Asia and European equity indices are higher. A North Korea missile test irked South Korea who threatened to ‘punish” them but had no impact on markets. Perhaps it was “Fake News.”  There is a lot of that going around.

USDCAD traded quietly but with a negative bias, supported by Friday’s strong employment report and firm oil prices.

Overnight Ranges

Open
13-Feb-17 High Low

USDCAD

1.3125

 1.3119

1.3075

EURUSD

1.0691

 1.0657

1.0613

USDJPY

112.28

 114.16

113.4

GBPUSD

1.2570

 1.2537

1.2481

USDCHF

0.9957

 1.0051

1.0020

AUDUSD

0.7652

 0.7683

0.7660

NZDUSD

 0.7218 0.7217

0.7181

USDMXN

      20.3047 20.3875 20.3047

WTI

53.55

 53.92

63.32
Close 4:00 pm EDT-Open 6:00 am EDT

 

USDCAD Technical outlook:

The intraday USDCAD downtrend remains intact while prices are below 1.3115 looking for a break of support at 1.3070 to extend losses to 1.3010.  A break below the 1.2990-1.3010 support zone will extend losses to 1.2875. A move above 1.3115 would lead to a test of 1.3190.  For today, USDCAD support is at 1.3070 and 1.3030.  Resistance is at 1.3120 and 1.3160.

Today’s Range 1.3070-1.3115

Chart: USDCAD 1 hour  

MEXICO  

USDMXN snapped the intraday downtrend with the move above 20.3380 and spent the entire overnight session jockeying for position in a 20.2940-20.3005 range.  A break above 20.3987 will extend gains to 20.4690 while a break below 20.2900 opens the door to 20.2748

Chart: USDMXN  1 hour

Source: Saxo Bank