Welcome back Canada. The US dollar is a tad worse for wear from where you left it on Friday, having lost ground against all the majors except for the British pound.
Manchester is United after a terrorist attack killed 19 people on Monday night. GBPUSD fell from 1.3004 to 1.2954, partly because of the news but largely due to the UK Conservative party’s drop in the polls. A dash of Brexit angst over the cost of the UK’s exit from the EU was thrown in as well.
German chancellor Merkel managed to give EURUSD a lift when she was speaking to students in Berlin. She said Berlin that a “too weak” euro was behind Germany’s large trade surplus. The single currency spiked to 1.1262 from 1.1164 but has since pared back those gains.
USDJPY traded sideways inside a 110.86-111.55 range due to bearish short term technicals and the on-going White House drama.
WTI Oil prices peaked on Monday on news that many Opec nations have agreed to the Russia Saudi plan to extend production cuts for nine months. WTI declined to $50.60/b on Tuesday, in part BECAUSE Iran has not agreed to the terms.
AUDUSD, NZDUSD rallied while USDCAD declined as the commodity bloc currencies took advantage of the broad US dollar weakness.
The mix of US data on tap today will be largely ignored while traders wait for Wednesday’s release of the minutes from the May 3 FOMC meeting.
USDCAD Technical outlook:
The intraday USDCAD technicals are bearish while trading below 1.3510 looking for a break of 1.3440 to extend losses to 1.3410. A move above 1.3510 suggests another test of 1.3580. For today, USDCAD support is at 1.3440 and 1.3410. Resistance is at 1.3510, 1.3540 and 1.3580
Today’s Range 1.3440-1.3510
Chart: USDCAD 30 minute
Source: Saxo Bank