Overnight Range 1.2928-1.2991
The US dollar took it on the chin this morning when the Retail Sales and Producer Price data were released. Both reports were weaker than expected and undermined the case for a rate hike. EURUSD vaulted to 1.1220 from 1.1150, USDJPY plunged to 100.90 from 102.27. Even sterling managed to jump back above 1.3000.
USDCAD sank. The currency pair was already under pressure from the rally in oil prices and US data was just another excuse to sell.
The overnight session was quiet. Chinese data which included Retail Sales and Industrial Production was slightly below forecasts which may have contributed to some slippage in AUDUSD and NZDUSD. USDJPY climbed above 102.00 in early Asia and then consolidated the gains in a 102.00-20 range into the New York open.
In Europe, German GDP data was better than expected, helping EURUSD drift higher. GBPUSD consolidated its losses below 1.3000 with traders’ content to await this morning’s US data.
Oil prices continued to move higher touching $44.14 before drifting lower in Europe. Yesterday’s Saudi Oil Minister’s comments have spooked oil bears and are behind the rally. The rise in WTI prices has boosted the Canadian dollar. USDCAD traded in a very narrow band overnight. As oil goes, so does the Loonie.
USDCAD technical outlook.
The intraday USDCAD technicals are bearish while trading below 1.2990and with the break below the 1.2950 area targeting further weakness to 1.2860. A move above 1.3000 will shift the focus back to 1.3080 and 1.3120. For today, USDCAD support is at 1.2930, 1.2910 and 1.2880. Resistance is at 1.3000 and 1.3040
Today’s Range 1.2890-1.2990