USDCAD Overnight Range 1.2576-1.2622
An aura of calm has drifted over the FX markets following Friday’s frenzied action. The US dollar buyers have given way to US dollar sellers with the G-10 currencies eking out gains across the board (JPY and SEK were flat).
Greece garnered a few headlines.The Finance Minister was talking about early Greek elections and a possible EU referendum as a veiled threat to the EU.The Greek PM told him to stick a souvlaki in it.
Oil prices were a tad softer even after the Opec secretary-general said on the weekend, that he believed the oil market would return to balance in H2 2015. Maybe so, but Goldman Sachs released a report targeting $40.00/bbl in the near term.
USDCAD will drift on the tide of US dollar flows until Friday’s Canadian employment data (Forecast -5K). A lack of top tier US data, other than Retail Sales on Wednesday, suggests choppy, consolidative trading market for this week.
USDCAD technical Outlook
The intraday USDCAD technicals are bullish but need to break above 1.2620 and then 1.2660-80 for the rally to accelerate, otherwise the risk is for 1.2480-1.2660 consolidation this week. For today, USD support is at 1.2570 and 1.2540. Resistance is at 1.2620 and 1.2640.
Range for balance of the day 1.2560-1.2620