USDCAD Open (6:30 am) 1.3163-67        Overnight Range   1.312-1.3172       

 The US dollar is demand. Better-than-expected US PMI data and hawkish comments from Fed speakers yesterday, drove the greenback higher against all the G10 currencies overnight, except for NZDUSD, which was unchanged.

The Canadian dollar has been swamped by the wave of US dollar demand.  The benefits to the Loonie from the recent surge in oil prices have been diminished as FX traders refocus on the US interest rate outlook.

USDJPY was the big mover in Asia as the improving prospects for a US rate hike overwhelmed Bank of Japan easing concerns. USDJPY soared to 102.50 from 101.48 at the New York close.

The Reserve Bank of Australia was widely expected to leave interest rates unchanged at their policy meeting.  They did. AUDUSD drifted lower due to general US dollar strength.

EURUSD was under pressure right from the open in Asia and that pressure continued throughout the overnight session driven by US interest rate expectations.

Sterling was in the spotlight. GBPUSD made a new 31 year low due to the risk that Brexit negotiation animosity may jeopardize the UK banking industry. GBPUSD touched 1.2815 in Asia and then bounced modestly

Oil prices are in a short term uptrend while trading above $47.90/b supported by a report that Iran is urging non-Opec members to support Opec’s price stabilization measures. Iran, of course, is exempt from a production cap.

USDCAD technical outlook.

The intraday USDCAD technicals are bullish while trading above 1.3080 and looking for a break of resistance at 1.3180 to extend gains to 1.3250. For today, USDCAD support is at 1.3140 and 1.3090.  Resistance is at 1.3180 and 1.3230.

Today’s Range 1.3120-1.3220