Overnight Range 1.3217-52      

As dollar rallies go, the overnight moves were of the half-hearted variety, more static than substance.  The US dollar eked out gains against some of the G10 currencies ahead of president-elect, Donald Trump’s press conference schedule for 11:00 am EDT

In Asia, AUDUSD and NZDUSD climbed, supported by higher commodity prices but both rallies petered out by mid morning in Europe.

USDJPY traders made an unconvincing attempt to unwind yesterdays sell-off. The currency pair rose for 115.70 to 116.23 before reversing it self and retreating close to its opening level. European traders looking ahead to Trump, started buying USDJPY again and drove e it to 116.50 when New York opened.

The looming Trump press conference was made more interesting by a dubious claim by a former British spy claiming that Russia has “compromising” information on Mr. Trump who was not impressed.  He tweeted “FAKE NEWS-A TOTAL POLITICAL WITCH HUNT!”

EURUSD traders took EURUSD from 1.0556 down to 1.0512 when New York walked in.

Sterling’s movements were less rumour and more data driven. GBPUSD was drifting lower in Asia still suffering the effects from renewed “hard Brexit” fears, when a weaker than expected UK trade deficit report ignited additional selling.  The trade deficit widened to £4.16 billion. GBPUSD quickly sank to 1.2095 and started the New York session at 1.2125

Oil remains under pressure. Yesterday, the API reported a smaller than expected build in US inventories and WTI bounced off the $50.68 low.  However, gains have been understated and after peaking at $51.31 in Europe, WTI started the New York session at $51.01. Concerns surrounding Opec’s production cut compliance is weighing on the market.

USDCAD meandered within a narrow trading band, content to follow US dollar moves vs. the majors.

It will be an interesting day for speeches. The Bank of England Governor Mark Carney will deliver a speech which will be closely watched for his take on the Prime Minister’s suggestion of a hard Brexit. Shortly afterwards, Donald Trump will entertain the masses at a press conference scheduled for 11:00 am. That will conclude the entertainment portion of today’s program.  There are not any US or Canadian data releases scheduled.

Close 4: pm EDT-Open 6:00 am EDT

USDCAD Technical outlook:

The intraday USDCAD technical are directionless inside the 1.3170-1.3300 range which has been intact for the past few days.  A break either side could result in a .0100-point move. The break below the 100-day moving average on Jan 5 keeps the focus on the 200-day moving average at 1.3097) The intraday technicals are bullish while prices are above 1.3210 and looking for a break of the 1.3260 area to extend gains to the 1.3320-50 area.  For today, USDCAD support is at 1.3220 and 1.3170.  Resistance is at 1.3260, 1.3290 and 1.3320

Today’s Range 1.3220-1.3320

Chart: USDCAD 30 minute