In 1941, Franklin D Roosevelt said of December 7th; it would be “a date which will live in infamy”. Nothing occurred in overnight markets that would change that sentiment.

The US dollar recorded modest gains across the board when the greenback opened, this morning.

In Asia, a narrowing of the Australia Trade surplus to flat (Actual $105 million) added to AUDUSD pressure from improved greenback sentiment.  AUDUSD tumbled to 0.7522 from 0.7568.

Kiwi followed AUDUSD lower.  NZDUSD dropped from 0.6887 to 0.6837.

USDJPY continued to see-saw inside the range seen since Monday.  The overnight gains merely recouped yesterday’s losses.

Bearish technicals, weaker than expected German Industrial production data and mild optimism about US tax reform put downward pressure on EURUSD.  The single currency opened in New York at the bottom of its 1.1779-1.1807 range.  Eurozone Q3 GDP was 0.6% as expected

Sterling was uneventful in Asia and early European trading but caught a bid just as New York started.  The catalyst was a BBC report suggesting Prime Minister May and the DUP would reach an agreement on the Irish border issue.  GBP rose from 1.3374 to 1.3419, but that move was quickly erased.  Brexit headlines will continue to roil GBPUSD trading.

The rise in the US dollar put downward p[ressure on gold prices Gold was at $1,264.33  just before Europe opened and dropped to $1,255.06 when New York started.

Oil prices bounced from yesterday’s low, supported by yesterday’s news that Goldman Sach analysts raised their 2018 price forecast.

The Canadian dollar continues to be beaten up.  Broad US dollar strength fueled USDCAD gains after the BoC seemed to shift its focus from economic data to NAFTA trade talks. Diminished rate hike expectation in 2018 powered USDCAD to 1.2832 from 1.2788, well above yesterday’s 1.2655 low.

Yesterday’s Bank of Canada statement ensures that better than expected Ivey PMI data today (Forecast 62.7, previous 63.8) will be ignored while a weaker than forecast number will boost USDCAD.  The US dollar is likely to trade in narrow ranges ahead of tomorrows employment report while ignoring domestic data releases, which include Jobless Claim

USDCAD Technical outlook:

The USDCAD technicals are bullish.  The failure to decisively break below support in the 1.2650-60 area combined with the rally above 1.2750 has shifted the focus to resistance in the 1.2915-30 area.  A break above the top would target 1.3130, the 61.8% Fibonacci retracement of the 2017 range.  For today, USDCAD support is at 1.2805 and 1.2770.  Resistance is at 1.2840 and 1.2870.

Today’s Range 1.2770-1.2870