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November 11, 2020

USDCAD open (6:00 am ET) 1.3035-39, Overnight Range 1.3011-1.3074

  • Partial Bank holiday in Canada today
  • Another record high COVID-19 cases reported in US
  • Brexit deal hopes driving GBPUSD

FX Ranges at a Glance

Source: IFXA Ltd/RP

FX Recap and Outlook  “Lest We Forget” is the theme for today in the US and Canada, as both countries honour soldiers killed in wars.  “Let the Good Times Roll” is the theme in equity markets as European, UK, and US Stock futures extend this week’s gains.

Hopes for a COVID-19 vaccine have overshadowed news of 135,428 new coronavirus cases in the US, a 34.7% increase in the past week.

There have not been any U-Haul sightings at the White House, as Trump refuses to concede the election, blocking Joe Bidens hopes for a smooth move.

EURUSD broke support in the 1.1770 area, clearing the track toward the next key level at 1.1690.  Expectations that US economic growth will outpace that of the Eurozone is on factor weighing on prices.

GBPUSD is getting a “Brexit-deal” bump, as traders become more convinced that the EU and UK will agree to a new trade deal.  Reuters reported that talks would continue beyond the previous November 15 deadline. GBPUSD rose to 1.3314 from 1.3241 before retreating to 1.33617 in NY trading, due to broad US dollar demand.

USDJPY continued to ride the safe-haven unwind trade rising from 105.02 to test resistance in the 105.50 area.  Steady to higher US 10-year Treasury yields are underpinning prices.

NZDUSD was the best-performing G-10 currency pair overnight, rising from 0.6811 to 0.6902 after the RBNZ, surprised traders by not be “uber-dovish.”  The Bank left interest rates, and the Large Scale Asset Program unchanged.  The disappointment came when the bankers did not even hint that negative interest rates would be implemented any time soon.

AUDUSD got a bit of a lift when Consumer confidence data rose for the third month in a row.

USDCAD traded with a bullish bias, rising to the top of its 1.3011-1.3074 range, in NY trading.  The gains are due to general US dollar strength vs the majors, however bearish technicals and rising crude prices may cap the topside.

It’s a partial holiday in Canada and the US, and there are not any economic reports on tap.

USDCAD Technicals:   The intraday technicals are mildly bullish while prices are above 1.3010, looking for a move above 1.3080 to extend gains to 1.3170.  Further gains may be limited as hourly RSI indicators suggest the rally is overdone. The  longer term technicals outlook is bearish below 1.3240.  For today, USDCAD support is at 1.3010 and 1.2970.  Resistance is at 1.3080 and 1.3110. Today’s Range 1.3010-1.3110

Chart: USDCAD hourly

Source:  Saxo Bank

FX open (6:00 am EDT) High, Low, and previous close

Source:  Saxo Bank