It is a Bank and government holiday in Canada for Remembrance Day (Nov. 11)

Sterling kicked off a bout of US dollar demand in Asia. A Sunday Times article claimed 40 MP’s are ready to sign a “no-confidence” letter in Theresa May.  They need eight more signatures to trigger a leadership vote.

GBPUSD dropped from Friday’s close of 1.3191 to 1.3064 before inching back to 1.3089 in New York.

USDJPY dropped from the open in Asian, falling from 113.54 to 113.26 this morning coinciding with slightly softer US Treasury yields.

AUDUSD and NZDUSD see-sawed in narrow ranges, tracking broad US dollar moves.  RBA Deputy Governor Guy Debelle said that an Australia rate hike would be a result of a strong economy, not a shock.

EURUSD traded sideways in a 1.1638-58 range.  There was not any European data of note, and the US data cupboard is bare as well.

Oil prices remain elevated, supported by Opec’s forecast for rising demand and falling supply, in 2018.

USDCAD is consolidating recent losses below support at 1.2730 and 1.2690 and looking for another test of support at 1.2660

Canada FX markets will be quiet.  It may be a Bank holiday, but the domestic banks will have some staff manning the desks.  There isn’t any US data on tap.

USDCAD Technical outlook:

The intraday USDCAD technicals are bearish while prices are below 1.2720, looking for a move below support at 1.2660 to extend losses to 1.2600 and then 1.2550.  A break above 1.2720 suggests additional 1.2660-1.2760 consolidation.

Today’s Range 1.2500-70

Chart: USDCAD 1 hour