USDCAD Overnight Range 1.3900-1.3935
The Canadian dollar was attempting a rally on the back of an ever-so-modest bump in oil prices edge higher in a very thin, holiday market. The rally ended abruptly with this mornings release of US and Canadian data. Both, Canada October GDP and Retail Sales were weaker than forecast which may not be looked upon too favourably by the Bank of Canada. Meanwhile, the US data, Durable Goods and PCE, was as expected which should be USDCAD positive. The post data USDCAD gains have been stymied by the tic higher in oil prices which will be the main trading theme for the balance of the year.
FX activity overnight was extra quiet, helped by a holiday in Japan. (Emperors Birthday). GBPUSD recouped all of yesterday’s losses while NZDUSD and AUDUSD retraced yesterday’s gains. FX volumes are low and the holiday’s have started.
This is the last commentary for the week and will resume on Tuesday December 29th. Merry Christmas.
USDCAD technical outlook
This mornings failure to break below support in the 1.3900 region keeps the focus on the 1.4000 area. A break above 1.3940 should see an acceleration in gains to 1.3990 while a move below 1.3900 will extend losses to 1.3860.
Forecasted Range until December 29 – 1.3860-1.4030
Chart USDCAD 4 hour