FX markets were subdued in Asia and livelier in Europe but still lacking the chopping, churning volatility of a few weeks ago. In fact, they were almost normal. Softer than expected China CPI data raised the risk of another PBoC rate cut which gave AUDUSD a boost, a move that was not sustained.

The European session took a shine to US dollars and bought them across the board mostly on uncertainty surrounding Greece. The Greek government wants the Eurozone to lend them another €10 billion while they discuss stiffing the eurozone on the outstanding €250+ billion that is owing.

USDCAD started the day near minor support at 1.2450 but has since rallied to the day’s highs (currently 1.2515) without any clear driver for the move. There may not have been a clear driver, but USDCAD sentiment is bullish due to expectations of poor economic growth and a renewed decline in oil prices. A Citibank forecast of $20/bbl for WTI didn’t help.

USDCAD technical Outlook

The intraday USDCAD technicals are modestly bullish while trading above 1.2450 with the overnight spike to 1.2494 snapping an intraday downtrend. A move above 1.2495-00 targets 1.2540 while a break of support at 1.2450, risks a return to 1.2420