USDCAD   Overnight Range 1.2912-1.2948        

The US dollar is up across the board against the G-7 currencies, with the exception of AUDUSD which is flat on the day. Yesterday, Janet Yellen indicated that in her view, US rates would be going higher in 2015, much to the dismay of many analysts.  They believed that effects of the Greek bail-out which could hamper the Eurozone economic growth outlook and on-going worries about the real health of the Chinese economy would temper the FOMC’s enthusiasm for a possible global market destabilizing rate increase. Apparently, as far as the Fed is concerned, those issues are not a concern.

In other markets, Kiwi curdled on a poor GlobalDairyAuction with a CPI report not helping matters. Between Yellen’s speech and the auction news, NZDUSD plunged from 0.6720 to 0.6500, a rather nasty move.   Elsewhere, the EU may advance a €7.0 billion bridge loan to Greece and the ECB left rates unchanged.

The outlook for the remainder of the day is for FX markets to consolidate yesterday’s moves. Janet Yellen gives a repeat performance today, this time to the Senate, which is expected to be a repeat performance.

Technical Outlook

The intraday USDCAD technicals are bullish while trading above the 1.2880-1.2910 area looking for a break of the intraday top at 1.2955 to extend gains to 1.3000 and then 1.3050. However, as upside momentum wanes it makes sense to expect that the huge gap from 1.2800 (pre-BoC cut) to 1.2900 (post-BoC) gut gets back filled.  For today, USD Support is at 1.2920 and 1.2880.  Resistance is at 1.2950 and 1.3000.

Today’s Range 1.2910-1.2960

Chart: USDCAD hourly showing “gap”