The Canadian dollar is the only G10 currency to have added to Friday’s losses.  All the others posted small gains in quiet trading as the holiday season begins.

In Asia, the Australia Government’s Mid-Year Economic review predicted a $5.3 billion narrowing in the budget deficit.. AUDUSD moved higher on the news, rising from 0.7642 to 0.7669.

NZDUSD struggled to keep pace with the Aussie gains and started the New York session just above Friday’s close.

USDJPY consolidated Friday’s gains that were triggered by news the US is on the verge of passing the Trump tax reform bill.  President Trump said, “This is going to be one of the great gifts to the middle-income people of this country that they’ve ever gotten for Christmas.” USDJPY traded in a 112.52-112.82 range

In Europe, November Eurozone inflation data was as expected (Actual 1.5% vs forecast 1.5%, y/y). EURUSD recouped almost all of Friday’s losses, despite speculators hanging on to record short dollar positions..

Sterling recovered most of Friday’s drop following news that Brexit negotiations to phase two.  GBPUSD traded in a 1.3312-1.3361 range and opened close to the peak.

Oil prices traded in a $57.34-$57.76/barrel range while gold climbed steadily, rising from $11,253.06 to $1,258.41.

There isn’t any data to get excited about this morning, leaving traders to find inspiration elsewhere.That may come from headlines about US tax reform, or equity market performance (will the Dow hit 25,000?).  Many FX traders and corporations have already closed the books for the year and are content to sit on the sidelines.

USDCAD Technical outlook:

The USDCAD technicals bullish while prices are above 1.2750 looking fro a break of resistance at 1.2915 to extend gains to 1.3050. A move below 1.2750 suggests further 1.2660-1.2915 consolidation.  For today, USDCAD support is at 1.2830 and 1.2750.  Resistance is at 1.2890-1.2915 and 1.2970.

Today’s Range 1.2830-1.2920