Wall Street could have an ugly open today judging by the 0.66% drop in S&P 500 futures prices as of 6.15 am EDT.  The USD dollar traded sideways in Asia, even as equity markets in that region were mixed to higher, but started sliding from the European open.  Weaker than expected German and Eurozone PMI reports exacerbated the slide.  GBPUSD dropped on negative Brexit news and the rising prospect of a “no-deal” Brexit. President Trump repeated his complaints about the Fed to the Wall Street Journal.  The President said, “Every time we do something great, he raises the interest rates.”  Those comments may have added to the market unease.  US 10-year and 30-year Treasury yields are softer trading at 3.134% and 3.341%, respectively.

Oil

Oil prices accelerated their slide lower after the American Petroleum Institute said US crude inventories rose 9.88 million barrels.  The slide will continue if today’s EIA report confirms the increase.  WTI oil traded in a $66.07-$66.07 range overnight and is trading in the middle of that range.

CAD

The Bank of Canada policy statement, Monetary Policy Report (MPR) and Poloz press conference is just a few hours away.  A 0.25% rate hike is a given.  Markets are expecting upgraded MPR forecasts, especially after US/Canada trade concerns have been alleviated.  Price action may get whippy, especially if the Governor’s comments contradict, forecasts in the MPR.US economic data includes August Housing Price Index, and New Home Sales.

This 1.3070-1.3130 range will not contain prices today.  The uptrend line from February is intact above 1.2870 while the downtrend line from June comes into play in the 1.3130-50 area.  A topside break suggests a test of 1.3250 while below 1.2970 targets 1.2870.  For today, USDCAD support is at 1.3070, 1.3020 and 1.2990.  Resistance is at 1.3130, 1.3160 and 1.3220.

Today’s Range 1.3020-1.3120