USDCAD was mostly ignored overnight.  It was content to drift inside a 0.0026 point range but played” catch-up” when early Toronto traders got to their desks.  Prices quickly moved higher and traded at 1.3326, but the rally stalled. Traders are leery ahead of Bank of Canada Governor Poloz’s speech on Wednesday and looking ahead to the Business Outlook survey and April GDP data on Friday.  If Mr Poloz decides to focus on the economic positives rather than trade worries, USDCAD could come under pressure.

 Just before Wall Street closed yesterday, White House Director of Trade Policy Peter Navarro told CNBC “today’s market reaction is a very large over-reaction.”  He said the administration did not have any specific countries targeted for investment restrictions.

Asia traders took their lead from Wall Street and sold equities across the board but prices recovered from their lows.  The Nikkei finished flat on the day. USDJPY traded lower, falling from 109.79 to 109.38 and then retraced the move in Europe.  AUDUSD and NZDUSD traded with a negative bias. Both currency pairs opened in New York at their overnight lows.  Kiwi traders are looking ahead to the  RBNZ policy decision on Thursday.

There wasn’t any economic data of note from the Eurozone or UK.  GBPUSD  traded quietly in Asia and then dropped in Europe.  Incoming MPC member Jonathan Haskel’s remarks today were thought to be dovish, and GBPUSD fell from 1.3290 to 1.3208.

EURUSD ticked higher in Asia, reaching 1.1719 before sliding to 1.1652 in Europe.  The single currency tracked GBPUSD moves lower

The US releases more housing data today, in the form of the Case-Shiller Home Price Indices.  Traders will be more focused on Wall Street developments and sound bites from the White House on trade.  The Canadian dollar will go a long for the ride.

USDCAD Technical Outlook

The USDCAD uptrend remains intact while prices are trading above 1.3280.  A move above resistance at 1.3340 will extend gains to 1.3380 and target 1.3500.  However, the upside momentum seems to have stalled. A break of 1.3280 would extend losses to 1.3205.  For today, USDCAD support is at 1.3280 and 1.3240.   Resistance is at 1.3330 and 1.3360.

Today’s Range 1.3270-1.3330