FX markets were very slow in Asia and a tad busier in Europe. It isn’t an official holiday in the US, but FX desks will be lightly staffed, nevertheless.

Asia FX markets were not very exciting NZDUSD drifted lower after the Trade deficit narrowed because it didn’t narrow as much as expected.

In Japan, November PMI rose to 53.8 (October 52.8).  USDJPY consolidated earlier losses in a 111.20-111.54 range.

EURUSD traded higher in Europe supported by positive German IFO data,  but an attempt to break resistance in the 1.1880 area was thwarted.  Eurozone President Juncker continues to sound hopeful about Brexit talks. EURUSD traded in a 1.1838-1.1873 band.

GBPUSD climbed from 1.3280 to 1.3330 in Europe and is trading at 1.3320. Traders ignored Irish politics and the risk to the UK’s Brexit plans.

The Keystone pipeline leak and very thin markets boosted oil prices, again.  WTI rose from $58.38 to $58.82.  Reuters, quoting Russia’s TASS news agency, reported Russia was ready to discuss extending the Opec production cuts at the November 30 meeting.

USDCAD ignored the WTI price rise and traded higher, supported by yesterday’s weak Retail Sales data.  However,  broad US dollar weakness and technical resistance at 1.2750 limited topside gains.

The US and Canadian FX sessions should be non-events.  The only data from the US is the Markit PMI report, but US Traders prefer the ISM Manufacturing PMI data.   It isn’t due until next Friday.  There isn’t any Canadian data and the NYSE closes early.

USDCAD Technical outlook:

The Intraday USDCAD technicals are bearish while prices are below 1.2750, looking for a break below 1.2700 to extend losses to 1.2660. Longer term, the decline from June 23 remains intact under 1.2830.  The break below 1.2750 on November 22, suggests that the rally from the September low of 1.2465 was a correction and may lead to a retest of the 1.2560 area.

Today’s Range 1.2690-1.2750

Chart: USDCAD Daily