USDCAD Open (1.3299-03 (6:00 am EST) Overnight Range 1.3287-1.3312
Sterling was the best performing G-10 major currency overnight thanks to UK polls pointing to a Conservative majority government. Asia FX opened with a mild “risk-on” tone because of weekend comments around the US/China trade talks which boosted the Antipodean currencies.
European traders didn’t see it that way. The Antipodean currency move was reversed, and the rest of the majors opened virtually unchanged from Friday’s close. (except GBP)
European traders didn’t see it that way. The Antipodean currency move was reversed, and the rest of the majors opened virtually unchanged from Friday’s close. (except GBP) Sterling was the best performing G-10 major currency overnight thanks to UK polls pointing to a Conservative majority government. Asia FX opened with a mild “risk-on” tone because of weekend comments around the US/China trade talks which boosted the Antipodean currencies. European traders didn’t see it that way. The Antipodean currency move was reversed, and the rest of the majors opened virtually unchanged from Friday’s close. (except GBP)
FX Market Snapshot
Change in currency value against the US dollar from NY close to NY open
Source: Saxo Bank/IFXA
Asia risk sentiment was positive on reports China would increase penalties related to IP Theft, a news article suggesting the US and China were very close to a Phased 1 deal, and both sides were committed to Phase 2 talks.
Multi-billionaire Michael Bloomberg his hoping for Trump-like success in his run for the Democrat Presidential nomination. However, many analysts suggest that he will come up “short.”
GBPUSD climbed from 1.2843 to 1.2883 when a YouGov poll projected a majority for Boris Johnson’s Conservative party. The intraday GBPUSD technicals are bullish above 1.2780, looking for a break above 1.2990 to extend gains to the 1.3200 area.
EURUSD has a slight negative bias, dropping from 1.1031 to 1.1011 where it opened in New York. German IFO Business Climate and Current Assessment Indices were as expected (95 and 97.9, respectively) while Expectations dipped to 92.1 from 91.6, earlier. A break of support in the 1.0990-1.1000 area targets 1.0950.
USDJPY jumped aboard the “risk-on” bandwagon and climbed from 108.65 to 108.88 and opened in New York at the top of the range. The IMF lowered its forecast for Japan GDP growth to 0.8%. It was the third cut this year. Prices were also underpinned by firming 10-year US Treasury yields which climbed to 1.791% from 1.769%.
Renewed US/China trade optimism continued to weigh on Gold prices while boosting oil prices. XAUUSD dropped from $1,472.60/oz on Friday to $1,457.77 in New York trading today. WTI oil prices traded sideways in a $57.69/b-$58.05/b range.
USDCAD extended the overnight range, rising above 1.3300 to 1.3312 in early Toronto trading. The currency pair continues to consolidate last week’s gains after Deputy Governor Carolyn Wilkins delivered a somewhat dovish speech. CPI and Retail Sales reports were close enough to expectations to be ignored, leaving the currency pair to track US dollar moves, which will be the case all week.
Canada Wholesale Sales and US Chicago, Fed National Activity Index reports, are due today. American traders will be more focused on getting away as early as possible, ahead of Thursday’s Thanksgiving holiday.
USDCAD Technical View
The intraday USDCAD technicals are bullish while prices are above 1.3280, looking for a break of resistance at 1.3330 to extend losses to 1.3380 and then 1.3450. A break below 1.3280 targets 1.3200 and suggests more 1.3150-1.3350 range trading. Today’s Range 1.3280-1.3330
Chart: USDCAD 30 minute
Source: Saxo Bank
