USDCAD Overnight Range 1.2567-1.2660  

The US dollar is giving back gains in the wake of Janet Yellen’s testimony and USDCAD is not exempted. In fact, the pre-testimony euphoria has faded and the US dollar is under modest pressure. The jury is still out, but her remarks are shaded towards hawkish but not nearly as hawkish as anticipated. EURUSD has not reacted much following news that the Eurozone Finance Ministers have approved the newest Greek proposals and the IMF doesn’t appear to be impressed.

In Asia, Kiwi came under pressure when the New Zealand inflation forecast missed expectations. The ensuing NZDUSD sell-off dragged AUDUSD down with it. The expectations for a hawkish Fed helped USDJPY stay above 119.00 and so far, Yellen’s testimony hasn’t changed that.

USDCAD remains vulnerable to fall-out from Stephen Poloz’s speech today at 11:00am PST if he is as doveish as expected.

USDCAD technical Outlook

The short term technicals are bearish following the post Yellen retreat through intraday support at 1.2605. A break below 1.2575 argues for further losses to 1.2510. For today, USD support is at 1.2570, 1.2540 and 1.2510.  Resistance is at 1.2610 and 1.2660.

Today’s Range1.2640 1.2540