USDCAD Overnight Range 1.2287-1.2330      

The US dollar was rather mixed overnight; gaining against the Aussie, Kiwi, and Yen while retreating against Sterling, Swiss and Euro. Liquidity was said to be ‘thin” and with the exception of sterling, there wasn’t any rhyme nor reason for the moves.

Aussie and Kiwi both dropped with “pre-FOMC positioning” blamed for the move. GBPUSD and GBPCrosses soared during the European session when the UK employment data was seen due to a rise in the average earnings component.

USDCAD went nowhere, content to meander within a narrow band. The relative stability in oil prices, modestly improving economic data and neutral to bearish USDCAD technicals have  helped to offset US dollar demand on the prospect of a hawkish FOMC statement today.

USDCAD technical outlook

The intraday technicals are modestly bearish having rejected additional US dollar strength above 1.2360 a number of times in the past week which suggests another probe of support in the 1.2240-60 area is likely.

The downtrend from the March peak remains intact while below 1.2550 while the uptrend from November is also intact above 1.2040.

Today’s Range 1.2250-1.2350

Chart: USDCAD hourly