Overnight Range 1.3377-1.3428
It’s Halloween and the market trick or treaters were out in force. Friday’s news that the FBI found Clinton emails on a computer in another investigation, rattled Asia markets this morning.
USDJPY gapped lower at the open, falling to 104.20 from 104.75 at Friday’s close. It recovered all the losses ,and more, by the New York open. The Bank of Japan policy meeting statement will be released tomorrow. No change is expected.
AUDUSD and NZDUSD also dropped lower at the open and recovered. The Reserve Bank of Australia policy meeting is on Tuesday. Rates are expected to be unchanged, supported by last weeks robust CPI report.
EURUSD declined steadily after gapping higher at the Asia open. EURUSD traders ignored better than expected Eurozone inflation data and Q3 GDP data, which met forecasts.
Sterling dipped and then rallied, aided by an increase in mortgage approvals. A story in the Financial Times that Mark Carney will extend his term for 8 years provided additional support to GBPUSD.
Oil prices have rebounded marginally from their overnight low. News that Opec was unable to secure commitments from non-Opec nations is still weighing on WTI.
USDCAD has retreated from the overnight peak but remains bid., undermined by soft oil prices, and general US dollar strength against the majors.
This morning’s release of US Personal Income and Expenditure data was spretty much as expected and didn’t create a stir in FX markets. USDCAD traders also ingored Canadian IPP data.
It is likely to be a very busy day in FX markets around the 1600 GMT fix (8:00 am PDT). The month over month drop in US equity indices suggests that the month end flows will lead to USDCAD buying. US election headlines may also have a disruptive effect.
USDCAD technical outlook.
The intraday USDCAD technicals are in a rising channel while prices remain above 1.3360 looking for a test of the channel top, currently at 1.3470. A break below 1.3360 would lead down to 1.3290. The short term USDCAD uptrend from September 7 remains intact while prices are above 1.3160. For today, USDCAD support is at 1.3360, 1.3320 and 1.3290. Resistance is at 1.3430, 1.3460 and 1.3490.
Today’s Range 1.3340-1.3440
Chart: USDCAD 30 minute