The Turkish Lira stopped free-falling and a semblance of calm returned to FX markets.Yesterday, the US dollar closed a tad softer from where it opened, except against the Japanese yen. This morning, not a lot has changed.  Price action was a tad choppy but still rangebound.

Turkish officials managed to staunch the bleeding in the currency (for the time being) which soothed traders. USDTRY retreated from its peak of 6.9550 in Asia and dropped to 6.4201 in Europe before bouncing to 6.5740 where it is currently sitting 6:30 am EDT) Asia and Eurozone equity indices were mostly in positive territory as are US equity futures.

EURUSD was flirting with 1.1428 when its dropped to 1.1381, just as Eurozone economic data was released.  Traders reacted to weaker than expected Eurozone Industrial Production.  However, GDP and German ZEW confidence were stronger than expected and prices recovered to 1.1410.

GBPUSD climbed from 1.2756 to 1.2825 in European trading, only to be knocked back to 1.2768 after a mixed UK employment report.  The unemployment rate fell but so did average hourly earnings.

USDJPY firmed in Asia, peaked in Europe, and dipped into the New York open on the back of some safe-have trade unwinding.

AUDUSD was unable to hang on to early Asia gains after China Retail Sales and Industrial Production data was weaker than expected.  NZDUSD fared marginally better.

USDCAD dropped steadily in Asia and Europe, undermined by the broad US dollar retreat.  Traders have dismissed Trump’s comments on the weekend that suggested a Canada traded agreement would be dealt with after the US and Mexico talks have concluded.

There isn’t any data of note from Canada and only third-tier US export/Import data from the US.  Traders may be content to wait for the US Retail Sales report due tomorrow.

.USDCAD Technical Outlook

The week old USDCAD uptrend line from 1.2960 comes into play at 1.3070 on the hourly chart. The minor downtrend is intact while prices are below 1.3130.  A break below 1.3070 targets 1.3040 and then 1.3010.  A move above 1.3130 would lead to a retest of 1.3180.

Today’s Range 1.3040-1.3130