USDCAD Overnight Range 1.33300-1.3345
USDCAD went for a little ride higher in early New York trading, supported by hawkish (as expected) comments from Richmond Fed president Jeffrey Lacker in pre-FOMC minutes release, position jockeying.
It was difficult to get excited about FX markets overnight, so no one did. Instead they read/watched updates on the hunt for terrorists in Paris which proved to be a successful venture.
The FX majors drifted within narrow bands led by EURUSD which has a bearish bias and reportedly, plenty of interest to sell “on a bounce”. Although commodity prices remain depressed, the Australian dollar has held in rather well. This morning, the president of the Swiss National Bank, Thomas Jordan, said that monetary policy “with negative interest rates is oriented towards the current situation with the still significantly overvalued franc”. That statement had a minimal impact.
USDCAD sentiment is still bullish but the lack of upside and repeated failures to extend gains above the 1.3350-70 area, has some bulls questioning their decision. WTI remains off its recent lows and is currently $41.26/barrel.
USDCAD technical outlook
There isn’t any change in the short term outlook from yesterday. USDCAD is stuck in a 1.300-1.3330 trading band. A break either side will yield another .0040 points. A break above 1.3380 puts 1.3455 in play while a move below 1.3270 exposes 1.3210.
Forecast Range for the day 1.3270-1.3350
Chart USDCAD 4 hour