USDCAD Overnight Range 1.2755-1.2390        

USDCAD is content to drift within a 1.2750-1.2800 range.  A worse than expected Manufacturing Shipments report (Actual -1.7% vs. forecast -1.2%) led to some modest USDCAD demand but the move was uninspiring. USDDCAD has also ignored the drop to $43.40/bbl in WTI prices which may prove to be a mistake.The downside risk to oil prices has risen on anticipation that a nuclear deal with Iran would ease sanctions and allow Iranian oil back onto the market. Weaker oil prices could force the Bank of Canada to cut rates again, as well.

FX markets were subdued overnight ahead of Wednesday’s FOMC statement and press conference with currencies trading within narrow ranges.The RBA released the minutes of its March meeting and to the surprise of no one, left the door open to further interest rate cuts while moaning about the “high Australian dollar”.  The BoJ left rates and policy unchanged, as widely expected, which pretty much left USDJPY unchanged for the entire session. GBPUSD moves are being blamed on election jitters, and event that does not occur until May.

USDCAD technical Outlook

The intraday USDCAD technicals are bullish above 1.2750 with a break of hourly resistance at 1.2800 extending gains to 1.2820 and then 1.2850. A break of support at 1.2750 will test 1.2705 and perhaps 1.2680.  For today, USD support is at 1.2750 and 1.2730.  Resistance is at 1.2800 and 1.2820

Today’s Range 1.2750-1.2800