USDCAD Open (6:00 am) 1.3387-90 Overnight Range 1.3387-1.3415L
USDCAD traded sideways overnight before drifting back below 1.3400 just before New York opened, undermined by rising oil prices and a modest improvement in risk tone. WTI oil climbed to $59.48/barrel from $59.07/b as traders dialed back fears of a global recession. USDCAD losses came alongside higher AUDUSD and a bounce in USDJPY. Nevertheless, USDCAD is still locked inside the Friday-Monday 1.3350-1.3442 range.
USDCAD continues to be supported by bullish technicals, weak economic data and Bank of Canada’s dovish monetary policy outlook.
GBPUSD gyrated in a 1.3160-1.3223 range overnight and was at the bottom of the range when New York opened. Headlines touting that British MP’s voted to take control of the Brexit process prompted a fast and furious rally to 1.3249 before prices settled back to 1.3230. In a nutshell, the MP’s will vote on a series of motions for Brexit options, which traders expect will lead to a “soft Brexit.” However, none of the votes are binding on the government.
EURUSD traders watched the GBPUSD action and were content to spin their wheels. The single currency traded sideways in a narrow 1.1304-1.1324 band. German Gfk Consumer Confidence Survey was 10.4 which was below the 10.7 forecast.
USDJPY climbed on the back of higher 10-year US Treasury yields which rose 1.23% to 2.444%.
NZDUSD traders are looking ahead to the RBNZ policy meeting at the end of the day. The RBNZ is expected to leave rates unchanged and issue a dovish statement, which weighed on the currency pair.
Today’s US data releases include February Housing Starts, Building Permits and Case Shiller Home Price Index.
The intraday USDCAD technicals are bullish while prices are above 1.3380, The February uptrend line is intact above and the longer term trend is also higher above 1.3300 while theuptrend from February 2018 comes into play at 1.3190. A break above 1.3440 and then 1.3480 targets 1.3650. For today, USDCAD support is at 1.3380, and 1.3330. Resistance is at 1.3440 and 1.3480.
Today’s Range 1.3380-1.3440