Overnight Range 1.3481-1.3548
USDCAD spiked to 1.3545 from 1.3515 when Canada October GDP dropped posted a negative 0.3% instead of the forecast gain of 0.1%. USDCAD had spent the Asia and European sessions in a very narrow 1.3477-99 range but started ticking higher when New York walked in.
Oil prices declined from $52.72 to $52.24 which aggravated the Canadian dollar’s decline.
Overnight, it was beginning to look a lot like Christmas. FX traders appear to have hung their keyboards with their stockings on the mantle. Narrow ranges were the norm in Asia and Europe.
The Michigan Consumer Sentiment index is due at 1500 GMT which could undermine the Loonie even further it exceeds the forecast of 98. US and Canadian markets will be closing early
USDCAD Technical outlook:
The intraday USDCAD technicals are bullish while trading above 1.3480. This mornings break of resistance at 1.3520 has put the 1.3570-90 pivot area in play. A topside break will extend gains to 1.3840. If it doesn’t break, it should lead to further 1.3420-1.3590 consolidation.
Today’s Range 1.3480-1.3580
Chart: USDCAD daily