USDCAD Overnight Range 1.2470-1.2525    

The US dollar barely budged on the Q4 GDP report (2.2%) and is ending the week on a down note having lost ground across the G-10 spectrum.The debate is still raging as to whether the current bout of US dollar weakness is merely a correction of the massive oversold positioning or perhaps the start of a consolidation phase.The out performance of European data vis a vis the US data is behind the consolidation arguments.

USDCAD traded higher overnight due to a retreating oil price and general US dollar strength. (it has since come off) Oil traders have apparently concluded that the Saudi/Yemen hostilities does not mean much for oil supplies and WTI has traded lower.EURUSD traded heavily in Europe with traders awaiting Monday’s revised Greek debt reform package. In the UK, BoE’s Mark Carney said that the next interest rate move is likely up. It wasn’t news.

Today could end with a “bang” if Janet Yellen’s speech has any drama. Most believe that her remarks will not offer anything new but if she was to drop a bombshell, what better time than the close of business on a Friday?

USDCAD technical outlook

The intraday USDCAD technicals are bearish with this morning’s move below 1.2505 giving scope for additional weakness to 1.2460 and then 1.2410.A move above 1.2525, representing the 1 week downtrend from 1.2810, which would extend gains to 1.2550 and then 1.2620.  For today, USDCAD support is at 1.2480, 1.2460 and 1.2410.  Resistance is at 1.2525, 1.2550 and 1.2610

 Today’s Range 1.2460-1.2530