USDCAD Overnight Range 1.2875-1.2966                

GBPUSD soared 300 basis points (0.0300) from Friday’s close on Brexit polls giving “Remain” the lead. That was all the info that US dollar bulls needed to bail out of long positions vs. the other major’s.  The greenback opened in New York down against everything, compared to Friday’s close, with the exception of yen. USDCHF was unchanged.

The following chart (from Bloomberg) shows declining bookie odds and rising GBPUSD

The Canadian dollar enjoyed the general “risk-on” sentiment and climbed steadily overnight and since the New York open. This mornings Canada Wholesale Sales data missed forecasts (Actual 0.1% vs forecast 0.5%) but no one cared.

The only thing that will matter to FX markets this week is the UK referendum on EU membership. Even Janet Yellen’s testimony to Congress on Tuesday and Wednesday is not likely to cause a stir.  That’s due, in part, because of its close proximity to the FOMC statement and press conference.

USDCAD technical outlook

The intraday USDCAD technicals are bearish while trading below 1.2850 and looking for a move below support at 1.2770 which opens the door to 1.2720. If this level breaks, it hangs a target on 1.2462, the May low. A move above 1.2850 points to a retest of 1.2910.  For today, USDCAD support is at 1.2790, 1.2750 and 1.2720.  Resistance is at 1.2850 and 1.2890.

Chart USDCAD hourly