Spring may be just around the corner but FX traders will start hibernating until Wednesday afternoon. A “life-threatening” blizzard and the countdown to the FOMC meeting will keep traders sidelined.

This morning’s US February Producer Price Index (forecast 0.1%, m/m) will not have any impact on trading.  There isn’t any Canadian data either.

The overnight session was pretty dull but it had its moments.  Sterling was the big mover and it moved down. The British House of Commons rejected the House of Lords amendment of the Article 50 bill and the stage is set for Article 50 to be triggered at the end of March. GBP {USD drifted lower in Asia and accelerated down in Europe, dropping from an overnight peak of 1.2222 to a low of 1.2111.

The better-than expected Eurozone ZEW economic survey (Actual 25.6 vs. forecast 19.3) helped offset disappointment from weaker Industrial Production data, leaving EURUSD to inch lower ahead of Wednesdays FOMC meeting.

In Asia, AUDUSD dipped after weak NAB Conditions and Confidence surveys which put downward pressure on NZDUSD.  Mixed China data contributed to the antipodean weakness.

USDJPY trade quietly in Asia but perked up in Europe, rising from a low of 114.77 to 115.18 on Japan/US interest rate policy divergence.

The Canadian dollar bounced within a 1.3440-1.3478 range, taking its direction from broad US dollar moves.

USDCAD Technical outlook:

The intraday USDCAD technicals are unchanged from yesterday. The USDCAD downtrend remains intact while prices are below 1.3480, looking for a break below 1.3430 to extend losses to 1.3360.  A move above 1.3480 will shift the focus to 1.3600.

Today’s Range 1.3430-1.3480

Chart: USDCAD 1 hour