USDCAD Overnight Range 1.3211-1.3276    

There’s a kind of a hush all over the world, at least in the FX world, with traders still digesting the impact of last week’s ECB actions and angst ahead of the FOMC meeting. The lack of any meaningful US data and the loss of an hour’s sleep will leave markets lethargic, if not cranky for the rest of the day.

In Asia, Chinese data was mixed. Industrial production and Retail Sales ticked lower while Fixed Asset Investment jumped.  That helped equities with the SHCOMP moving higher. Kiwi traders sold NZDUSD in part due to the Prime Minister warning that up to 10% of dairy farms could go under.  USDJPY drifted sideways ahead of Tuesday’s Bank of Japan policy decision.

The European session was tame. EURUSD continued to consolidate Thursday’s losses in a 1.1100-70 band.  Sterling traded in a similar fashion except GBPUSD traders have Thursday’s Bank of England policy meeting to look for to.

The Canadian dollar shrugged off a rather ugly employment report on Friday in part because the data is not seen as being the most reliable but mostly due to the general US dollar weakness in G10 currencies. Even slightly lower oil prices due a statement from Iran that they would only participate in an output cap once the reached production of 4 million barrels per day. That news is rather stale since Iran has been saying the same thing since production caps were first talked about.  USDCAD is likely to spend the rest of the day inside the overnight range.

USDCAD technical outlook

The short term technicals are bearish. USDCAD is in a downtrend channel from February 24 bound by 1.3100 on the bottom and 1.3380 on the top. For today, USDCAD support is at 1.3230, 1.3180 and 1.3160.  Resistance is at 1.3320 and 1.3360

Forecast Range for the day 1.3230-1.3330

Chart USDCAD 30 minute