Canadian and American markets reopened today after a long weekend, and the US dollar is modestly higher.  The US/China trade talks resume on Wednesday in Washington which is also when the minutes from the January 30 FOMC meeting are released.

USDCAD continues to be weighed down by WTI oil prices that made a new 2019 high of $56.18/barrel.  However, those losses have been offset, to a degree, but last week’s soft manufacturing data and the Bank of Canada’s dovish bias.  Also, the Canadian dollar is a victim of broad US dollar demand.

EURUSD failed to extend gains above 1.1323 and has accelerated lower in New York trading today.  Eurozone ZEW investor confidence improved but the looming Spanish election and dovish comments from ECB officials undermined the single currency.  The intraday EURUSD technicals are bearish while prices are below 1.1330, looking for a break of support at 1.1270 to extend losses to 1.1220.

GBPUSD bounced after a relatively positive employment report, but the rally quickly reversed because of on-going Brexit angst. GBPUSD is bouncing inside a 1.2880-1.2940 range with a break either side worth about 0.0050 points.

USDJPY snapped a slow drift lower when Bank of Japan Governor Kuroda said the BoJ could inject more stimulus into the economy if yen gains were hurting the economy and impeding progress to the 2.0% inflation objective. USDJPY rallied to 110.81 from 110.46.

AUDUSD dropped after the minutes from the RBA minute reminded traders that the Bank’s outlook was dovish due to “uncertainties.”  NZDUSD tracked AUDUSD lower.

There isn’t any Canadian or US economic data today.

USDCAD Technical Outlook

The USDCAD technicals are bullish while prices are above 1.3110, looking for a break above 1.3360 to extend gains to 1.3660.  The intraday technicals are also bullish while prices are above 1.3220, looking for a break above 1.3270 to traget 1.3360.  For today, USDCAD support is at 1.3220 and 1.3190.  Resistance is at 1.3270 and 1.3320. and 1.3330.  Today’s Range 1.3220-1.3320