USDCAD Overnight Range 1.2425-1.2470
Most of Canada and all of the US are enjoying a rather frosty holiday today suggesting a benign trading day ahead, although many FX desks will be staffed with skeleton crews. Kiwi traders were inspired to buy NZDUSD following a better than expected Retail Sales report while JPY traders liked the news of an end to the “technical” recession on a GDP print of 0.5% and sold USDJPY. The European session was a big yawn despite ongoing EU and Greece debt restructuring talks.
Wednesday’s FOMC minutes will be the focus but should not really cause a stir as they are a tad stale.Canadian Retail Sales on Friday will be the highlight of the week while oil price movements will dictate intraday movements.
USDCAD dropped through support at 1.2510 following the release of Manufacturing Shipments which(Actual 1.7%, vs.Forecast 1%) while WTI prices gained. (Currently $52.75) However, a lack of Canadian data next week and on-going negative sentiment should limit USDCAD losses.US and Canadian holidays on Monday should ensure a quiet afternoon session, today.
USDCAD technical Outlook
The short term technicals are bearish while trading below 1.2475 but needing to break support in the 1.2380-1.2410 zone to extend losses to 1.2310.A break of 1.2310 would target 1.21110. A move above 1.2475-90 suggests further gains to 1.2540 and then 1.2580
Today’s Range 1.2430-1.2480