Daily FX Comment: FX Markets still nervous

USDCAD Overnight Range 1.1735-1.1782

FX markets were jittery overnight which is likely to be the theme for today. USDJPY was extra choppy while AUDUSD popped higher on better than expected trade data. In Europe, mixed results for a series of PMI data, wariness ahead of the ECB meeting and renewed concerns surrounding Greece’s EU membership are weighing on EURUSD.

USDCAD is tracking US dollar movements, for the most part, although a poor result for the Raw Materials Price Index and WTI oil trading down at $48.90/bbl, should ensure a bullish bias to the currency pair.

Looking ahead, tomorrow’s release of the FOMC minutes may provide additional support to the US dollar as they will remind traders of the hawkish sounding FOMC statement just before Christmas.

USDCAD technical outlook

The short term USDCAD technicals are bullish looking for another test of 1.1835 with a decisive break above the intraday downtrend line, currently at 1.1780. A failure to the tops risks a return to support in the 1.1735-40 area.

Range for the day   1.1760-1.1810

Chart: USDCAD 30 minute