USDCAD Range 1.3222-1.3287      

USDCAD is higher, rising on the back of widespread US dollar strength while ignoring steady, but firm WTI oil prices.

The US dollar has gained across the G-10 spectrum, with the exception of JPY, and the driver has been the Euro and not anything US specific. EURUSD sellers have emerged from the woodwork in anticipation that ECB President, Mario Draghi will hint at further stimulus action in October, during his speech tomorrow. The currency moves may have been exaggerated as liquidity (Japan is on vacation) has been less than stellar.

Yesterday’s speech by Bank of Canada Governor, Poloz to Calgary oil workers wasn’t in the league of Mr Draghi’s “Whatever it takes” speech a few years ago. In fact it was mostly a lot of nothing except for the emphasis on a floating exchange rate that helps mitigate falling resource prices. Hmmm, was that a subtle shot at the Loonie bulls?

Eurozone interest rate sentiment and equity price movements will drive US dollar direction today. This morning’s US Housing Price Index (Actual 0.6% vs. forecast 0.4%) was ignored.

Technical Outlook

USDCAD is in a steep uptrend above 1.3210 with the break above 1.3230 suggesting further gains to 1.3300-50. A break below 1.3210 will lead to 1.3170 and then 1.3130.

Today’s Range 1.3230-1.3310

Chart: USDCAD hourly