USDCAD Overnight Range 1.2975-1.3045
Canada did it. Canadians elected a drama teacher with barely two years’ work experience and a nice head of hair covering a vacuum between his ears. Yup, PM Justin Trudeau will represent Canada on the world stage assuming that he is allowed to eat at the “big boys” table. Even, scarier, as Ontario residents know all too well, he is being advised by Dalton (Pinocchio) McGuinty, the architect of Ontario’s fiscal malaise.
USDCAD did not really react although some reports have the Canadian dollar weakening on the news. That was more a factor of a small slide in oil prices, than Mr. Trudeau’s victory.
The overnight markets were rather dull. The RBA minutes gave AUDUSD a boost with the suggestion that the weaker currency helped the “rebalancing. EURUSD drifted higher on position adjustment ahead of Thursday’s ECB meeting.
USDCAD ignored a soft Wholesale Sales print (Actual -0.1% vs. Forecast 0.2%) and is grinding lower and triggered intraday stop losses on the move below 1.2990. There are a couple of Fed speakers and Janet Yellen on tap today but none are expected to provide any insight or trading direction.
USDCAD technical outlook
The intraday USDCAD technicals are bearish while trading below 1.3000 with the move below the European low setting up steeper losses to 1.2950. A break below 1.2950 would target 1.2870. A move above 1.3010 would suggest another visit to 1.3050.
Todays forecast range 1.2940-1.3020