USDCAD Overnight Range 1.2385-1.2457

USDCAD extended its overnight gains in the New York morning, shrugging off modestly soft second tier data (Industrial production, Building Permits, Housing Starts and PPI) on anticipation of clearer rate hike signals from the FOMC minutes (Released 11:00 am PST).

Overnight, the Bank of Japan left its policy unchanged and combined with Chinese New Year’s eve, made for a dull session.  Cable stole the show during the European session with GBPUSD making big gains on strong employment data and a hawkish slant to the Bank of England minutes. EUR trading continues to be dominated by Greece debt re-negotiation headlines.

USDCAD is likely to hover around the 1.2430-50 area until the release of the FOMC minutes. A hawkish interpretation will lead to gains above 1.2500 while disappointment opens up a retest of 1.2360.

USDCAD technical Outlook

The short term technicals have reverted to bullish with the move above 1.2410 but need to break above resistance in the 1.2450 area to extend gains to 1.2490 and then 1.2540.  If 1.2450 holds, then a return to the 1.2340-60 area is likely

Today’s Range 1.2370-1.2460