USDCAD Overnight Range 1.3357-1.3405    

Not much was expected from today’s Bank of Canada interest rate decision and statement and not much was delivered.  The Bank seemed pleased that global growth was unfolding as they had predicted in the October Monetary Policy Report. The only negative was a reference to “vulnerabilities in the household sector continue to edge higher” an observation that is unimportant to the Canadian dollar, at least for now.

Janet Yellen’s speech at 9:30 PST may have some influence on the Loonie if it is deemed to be doveish. My guess is that she won’t say anything that dissuades markets from the December rate hike belief but she could provide hints of a long wait for hike number 2. That could lead to some US dollar selling.

The overnight action was fairly sedate. The US dollar was slightly offered in Asia although the ranges were narrow. AUDUSD got a boost from GDP data that was a tad better than forecast. In Europe, the US dollar was slightly bid and recouped a lot of yesterday’s losses, although the recent ranges remain intact.

Unless Janet Yellen say’s something to get traders excited, today is likely to be extremely dull.  Thursday’s ECB meeting could be a game changer leaving traders in wait and see mode.

USDCAD technical outlook

USDCAD is stuck within a 1.3310-1.3405 trading band with a break either side yielding another 0.0060 points. Meanwhile the dip below the uptrend line at 1.3360 combined with this morning’s failure to extend gains above 1.3405 puts the 1.3310-20 support area in play.

Longer term, the USDCAD uptrend remains intact with a break of 1.3460 extending gains to 1.3600.  A move below 1.3240 suggests additional 1.3050-1.3450 range trading.

Forecast Range for the day 1.3320-1.3405

Chart USDCAD 1 hour