Overnight Range 1.3085-1.3168

A firm US dollar at the New York open turned tail following a modest miss in US Initial Jobless Claims data and USDCAD dropped in concert.

FX traders who expected additional clarity as to the Fed’s intentions in March were disappointed yesterday afternoon when the minutes from the Jan.31/Feb.1 FOMC meeting were released.

US dollar bids evaporated in the immediate aftermath annd the greenback declined. However, by the time New York opened today, the US dollar had made teensy gains against the G10 currencies.

Asia traders picked up the baton but did not run with it at all. USDJPY inched up to 113.45, drifted down to 113.06 and then traded in a narrow 113.06-113.33 band in Europe. It opened in New York at 113.06.

AUDUSD declined from 0.7710 to 0.7663 in early Asia trading but the soft tone to the US dollar against the majors gave it a boost and AUDUSD is back flirting with 0.7700.

Kiwi held its own. NZDUSD traded choppily but with a positive tone.

EURUSD managed to hang on to most of its gains following the release of the FOMC minutes but was unable to add to them.  The single currency is under pressure from expectations of higher US rates “soon” and French election headlines.

Sterling did manage to extend yesterday’s gains despite a drop. In prices in Asia. GBPUSD climbed to 1.2452 from 1.2486. ECB Chief Economist Peter Praet opined that the UK would be unable to take complete control; of its destiny through Brexit because it was too small, His remarks were ignored.

Oil prices climbed further after yesterday’s API report of a tiny increase in US crude inventories.  WTI rose from $53.58 to $54.43 where is now sits.

The US dollar retreat after the FOMC minutes helped the Canadian dollar recover from the worse than expected Retail Sales data earlier in the day. USDCAD dropped from. The overnight range was narrow intraday technicals that were bullish have flipped to bearish

Overnight Ranges

6:00: AM
23-Feb-17 High Low
USDCAD 1.3159 1.3175 1.3111
EURUSD 1.0545 1.0556 1.0495
USDJPY 113.19 113.72 112.97
GBPUSD 1.2454 1.2506 1.2439
USDCHF 1.0098 1.0134 1.0080
AUDUSD 0.7688 0.7708 0.7668
NZDUSD 0.7193 0.7174 0.7156
USDMXN 19.9485 19.9501 19.8567
WTI 54.31 54.43 53.94
Close 4:00 pm EDT-Open 6:00am EDT


USDCAD Technical outlook:

The USDCAD technicals are bearish. USDCAD snapped an intraday uptrend with this morning move below 1.3120 which sets the stage for a retest of the 1.2990-1.3010 support zone.  A break above 1.3160 is needed to ship the focus back to the top.  For today, USDCAD support is at 1.3060 and 1.3010.  Resistance is at 1.3130 and 1.3160

Today’s Range 1.3060-1.3130

Chart: USDCAD 1 hour

Source: Saxo Bank


USDMXN dropped to 19.8340 from 19.9945 after today’s jobless claims data but quickly reversed the move.  USDMXCN is likely to consolidate yesterday’s losses following the currency hedge announcement.  The absence of any additional data suggests that USDMXN will trade within a 19.8440-20.1000 range today.

Chart: USDMXN I hour

Source: Saxo Bank