Overnight Range 1.3011-1.3054
USDCAD has been grinding higher since the start of the New York session due to rising expectations for higher US interest rates, possibly in September. Fed Vice Chair Stanley Fisher gave an interview on Bloomberg but didn’t offer anything new. Canada posted a record Current Account deficit, which was still better than forecast, but the news led to additional USDCAD buying,
Overnight, the US dollar squeezed out additional gains across the G10 spectrum in a subdued trading session. Traders were not overly eager to get involved ahead of Federal Reserve Vice Chair Stanley Fisher’s interview on Bloomberg, although it proved to be a non event. They were also a tad concerned about month end rebalancing flows and Friday’s nonfarm payrolls report.
USDJPY declined in Asia but that move was short lived on verbal intervention by a Ministry of finance official. It opened in New York near the overnight high. EURUSD traded sideways within a narrow 1.1155-91 band and New York has followed suit. GBPUSD rejected the downside and popped to 1.3158 from 1.3060
The Canadian dollar remains at the mercy of US dollar sentiment and at the moment, that sentiment is bullish. USDCAD ignored the minor rally in WTI which climbed to $47.43/b from a low of $46.91
USDCAD technical outlook.
The intraday USDCAD technicals are bullish while trading above 1.3020 looking for a break of resistance in the 1.3060-80 zone to extend gains to 1.3140. A move below 1.3020 would lead back to 1.2950. For today, USDCAD support is at 1.3020 and 1.2990. Resistance is at 1.3060, 1.3090 and 1.3110.
Today’s Range 1.2990-1.3080
Chart: USDCAD 4 hour