Overnight Range 1.3072-1.3155   

The Canadian dollar drifted in a narrow range overnight and right up until this morning’s Canadian employment report. Employment rose by 48,000, handily beating the forecast for 0 growth while the unemployment rate dropped by 0.1%. USDCAD dropped from 1.3135 to 1.3072 on the news.

The US dollar continued to eke out gains overnight following President Trump’s promise, yesterday, of a “big league” tax announcement in a couple of weeks.  He said “We’re going to … lower the overall tax burden on American businesses big-league. That’s coming along very well. We’re way ahead of schedule, I believe. We’re going to be announcing something, I would say, over the next two or three weeks,” according to Fox News.

The Australian dollar drifted higher in Asia after the RBA’s mildly optimistic outlook for the economy. It topped out early and traded in a narrow 0.7630-52 range until New York opened.

It was the same story for NZDUSD which was unable to sustain early gains and eased lower. Even better than expected China Trade data couldn’t help the antipodean currencies rally.

USDJPY managed to keep all of Thursday’s gains but failed to extend the rally, content to remain locked in a 113.53-85 band.as New York started the day.

Sterling bounced within a 1.2467-1.2519 space. The impact from better than expected Trade and Manufacturing production data was fleeting.

EURUSD traders ignored a lot of chatter from ECB officials.  The single currency traded narrowly with a negative bias due to France political concerns and renewed Greek debt talks.

Oil traders have ignored this week’s news of a large gain in US Crude inventories. WTI prices jumped from $52.93 to $53.58 when the International Energy Agency (IEA) reported that Opec reduced production to 90% of the agreed volumes.

Overnight Ranges

10-Feb-17 High Low
USDCAD 1.3125 1.3155 1.3123
EURUSD 1.0691 1.0666 1.0636
USDJPY 112.28 113.84 113.25
GBPUSD 1.2570 1.2519 1.2467
USDCHF 0.9957 1.0032 1.0010
AUDUSD 0.7652 0.7655 0.7619
NZDUSD 0.7218 0.7204 0.7181
USDMXN          20.3190 20.3731 20.2981
WTI 53.54 53.58 52.93
Close 4:00 pm EDT-Open 6:00 am EDT

USDCAD Technical outlook:

The intraday USDCAD technicals are bearish.  A decisive break of support in the 1.3070-90 zone will extend losses to 1.3010 and then 1.2970.  A break above 1.3180 could lead back to 1.3220 but only a decisive move above that level, would negate the downward pressure.  For today, USDCAD support is at 1.3070 and 1.3010 Resistance is at 1.3140 and 1.3180.

Today’s Range 1.3030-1.3130

Chart: USDCAD 4 hour


USDMXN continued to slide after the Bank of Mexico (Banixco) raised interest rates by 50 basis points to 6.25%.  The move was widely expected. The Trump/Mexico wall has been pegged at a cost of $21.6 billion.  The intraday USDFMXN technicals are bearish while prices are below 20.4020 and looking for further losses to 20.1190

Chart: USDMXN  4 hour

Source: Saxo Bank