USDCAD Overnight Range 1.2415-1.2530
USDCAD remains close to the overnight lows following Bank of Canada Governor Poloz’s speech in the UK. It is not surprising since he did not say anything controversial or take aim at the Canadian dollar. But that’s alright, because if he wanted two-way risk in the Canadian dollar, oil traders did his work for him
USDCAD dropped dramatically overnight on news that Saudi Arabia had launched bombing attacks on Yemen and WTI spurted to $52.30/bbl from $49.90. And Saudi bombs weren’t the only ones falling.Coalition planes were bombing Tikrit, Iraq as well.
It’s hard to believe that the WTI rally is sustainable.How does a few bombs in a tiny oil producing nation (Yemen) sop up the glut of North American oil which is threatening to overwhelm storage facilities?
The US dollar weakness overnight can be directly linked to yesterday’s weak US Durable Goods report. Long US dollar positions which were beyond excessive prior to last week’s FOMC statement, are still being trimmed on fears of a delayed US rate hike.
USDCAD technical outlook
The intraday USDCAD technicals are bearish while trading below 1.2505 with today’s break of support at 1.2440 setting up further losses to 1.2350. A break below 1.2350 targets 1.2050. A move above 1.2510 puts 1.2550 in play. For today, USD support is at 1.2410 and 1.2360. Resistance is at 1.2480 and 1.2510
Today’s Range 1.2410-1.2490