USDCAD Overnight Range 1.3057-1.3140                     

USDCAD has had a busy morning after a sleepy overnight session. It started with headlines debunking any sort of Opec agreement to implement a production cap or freeze. USDCAD buyers emerged and took the currency back above 1.3100 to 1.3115 where it sat when the US jobless Claims data was released. (Actual 267,000 vs. forecast 270,000). The jobless claims data and the as expected ADP data support yesterday’s Beige Book observation that the American labour market is tightening.  Rising Fed rate hike expectations propelled USDCAD to 1.3140.

The European Central Bank left rates unchanged as expected and Mario Draghi’s press conference didn’t provide any surprises. EURUSD is off the overnight high of 1.1220, currently sitting at 1.1185, which is still well above yesterday’s 1.1113 low.

In Asia, USDJPY bulls continued to feel the pain of the VAT tax delay and the diminished prospects of additional Bank of Japan easing in July. Both USDJPY and the Nikkei were sold.  AUDUSD was on a one-way street lower undermined by weaker-than-expected Retail Sales and general commodity currency underperformance.

Brexit polls have put GBPUSD under pressure and it remains to be seen if Bank of England Governor, Mark Carney will counter those moves with his speech this morning.

USDCAD Technical Outlook

The intraday USDCAD technical broke are bullish while trading above 1.3020 supported by this morning’s move above 1.3090.  That is setting the stage for another attempt to crack the 1.3190-1.3210 resistance area. However, a move below 1.3070 would suggest more 1.2970-1.3150 consolidation.  For today, USDCAD support is at 1.3110, 1.3070 and 1.3040.  Resistance is at 1.3140, 1.3160 and 1.3190

Today’s Range 1.3070-1.3160

Chart: USDCAD and CAD Crosses and oil