“I think I see Trump packing” Picture: PxHere
November 24, 2020
USDCAD open (6:00 am ET) 1.3029-33 Overnight Range 1.3013-1.3083
- Biden’s transition team allowed to proceed
- Vaccine hopes curing the blues
- NZ backs away from negative rates
FX Ranges at a Glance
Source: IFXA Ltd/RP
FX Recap and Outlook: North American FX traders are walking into a kinder, gentler, but not quieter FX market. President Trump said his administration would cooperate with Biden’s transition team.
Later, in a Twitter outburst, Trump qualified his administration’s cooperation tweeting: “I want to thank Emily Murphy at GSA for her steadfast dedication and loyalty to our Country. She has been harassed, threatened, and abused – and I do not want to see this happen to her, her family, or employees of GSA. Our case STRONGLY continues, we will keep up the good… ..fight, and I believe we will prevail! Nevertheless, in the best interest of our Country, I am recommending that Emily and her team do what needs to be done with regard to initial protocols, and have told my team to do the same.
President-elect Joe Biden’s choice for Treasury Secretary is former Fed chair Janet Yellen, a noted dove and someone whom equity traders believe is market friendly, with the experience to manage the post-pandemic recovery.
The Biden transition news underpinned EURUSD. ECB policymaker Olli Rehn said “The scarring effects of the second wave are likely to be significant, and it’s necessary therefore to maintain ample monetary and fiscal stimulus to alleviate these possible long-term effects. It’s a better to be safe than sorry, and to avoid a premature tightening of financing conditions.” EURUSD is trading near the top of its 1.1839-1.1893 range with traders ignoring German IFO Survey results.
GBPUSD chopped about in a 1.3320-1.3379 range, rising, and falling with broad US dollar moves. Prices are bid on hopes for a trade deal, but traders are cautious.
USDJPY peaked at 104.64 in Asia and drifted steadily lower, finding a bottom at 104.16. Prices climbed on the back of widespread US dollar strength yesterday and dropped with the shift to bearish US dollar sentiment overnight.
NZDUSD and AUDUSD surged overnight. NZDUSD rallied as traders downgraded expectations that the RBNZ would adopt negative interest rates when the Finance Minister added house prices to the central banks mandate.
AUDUSD rallied with improved risk sentiment following the news that the White House would cooperate with the Biden transition team.
USDCAD dropped from 1.3083 to 1.3013 overnight but bounced to 1.3070 in early NY trading. Prices are tracking broad US dollar moves while lagging the antipodean currency
moves. WTI oil prices are steady to firmer, which is helping to limit gains.
BoC Senior Deputy Governor, Fed Vice Chair Richard Clarida and ECB Chief Economist Philp Lane are part of an IMF panel discussing “New Policy Frameworks for a “Lower-for-Longer” World.”
US economic data will be ignored as traders who can, pack their desks for an extended Thanksgiving holiday.
USDCAD Technicals: The intraday USDCAD technicals are bearish below 1.3105, looking for another test, then break of 1.3010 to extend losses to 1.2950. A break above 1.3080 argues for more 1.3010-1.3110 consolidation. For today, USDCAD support is at 1.3010 and 1.2950. Resistance is at 1.3060 and 1.3090 Today’s Range 1.3010-1.3110
Chart: USDCAD 4 hour
Source: Saxo Bank
FX open (6:00 am EDT) High, Low, and previous close
Source: Saxo Bank