USDCAD Overnight Range 1.1950-1.2085
Rampant nervousness ahead of Friday’s employment report and rumours of some sort of EU/Greek deal have US dollar bulls running for the hills and approaching a cliff. A better than expected Canadian Ivey PMI result (Actual 58.2 vs. forecast 49.2) has driven USDCAD below 1.1990 support and is now targeting 1.1940-50.
Tory blue Alberta turned NDP orange overnight when the incumbent cabal of trough-munching, self-serving Conservatives were sent packing. Oil prices soared and the Canadian dollar rallied, although those price moves had nothing to do with the election and everything to do with widespread US dollar weakness. Only NZDUSD lost ground among the G-10 currencies and that was due to a mix of Tuesday’s rate cut, a poor GlobalDairyAuction and a big jump in the unemployment rate to 5.8%.
Overnight, Euro area services PMI’s rose which may have given EURUSD a bit of a boost while GBPUSD is on edge ahead of the UK election tomorrow. Meanwhile, the bond market selloff has paused, for the moment.
The Australian employment data and the UK election will dominate trading tonight
USDCAD technical outlook
The intraday technicals are bearish while trading below 1.2080 with a break below support in the 1.1980-1.2005 area targeting 1.1920-40. A move back through 1.2080 points to a test of 1.2130. Longer term, a break of 1.1970-80 area, representing the 38.2% Fibo retracement of the July 14/Mar.15 range will lead to 1.1720, the 50% level.
Today’s Range 1.1940-1.2020