EURUSD is a tad firmer compared to Friday’s close even after Eurozone November CPI was lower than expected at 1.9%.(forecast 2.0%). The data came too close to the ECB meeting for anyone to care. GBPUSD is consolidating last week’s losses and managed to squeak out small gains.
USDJPY traded in a 113.31-51 range. It opened the week with a bid but gave back most of Asia’s gains in Europe.
Asia and European equity indices are modestly lower. US equity futures point to a soft opening on Wall Street. Oil prices consolidated Friday’s losses. WTI traded in a $51.10/barrel-$51.75/b range.
USDCAD was in a state of inertia on Friday, and nothing changed overnight. It wasn’t alone. FX markets were in full “holiday mode” ahead of Wednesday’s FOMC meeting and Powell press conference.
USDCAD direction is governed by broad US dollar moves vs the majors although soft oil prices act as a drag against losses. Canada inflation data is due on Wednesday. November CPI is forecast to rise 1.9%, down from the October gain of 2.4%.
There isn’t any Canada or US data of note today.
The intraday USDCAD tehnicals are bullish above 1.3360, looking for another test of resistance in the 1.3440-80 zone for an extension to 1.3550. A break below 1.3360 could lead to 1.3240 but that level is guarded by support at 1.3320 and 1.3280. Today’s Range 1.3360-1.3420.