USDCAD Range 1.3308-1.3350

US dollar bulls got support from this morning’s release of the final 2nd quarter GDP number which was revised up to 3.9% from 3.7%. That will help reverse some of this week’s risk aversion woes.

Toronto and New York traders had already left for their favourite watering holes when Janet Yellen began her speech at the University of Massachusetts, yesterday at 5pm. Her reiteration that she believes rates will rise in 2015, gobsmacked more than a few people, especially following last week’s FOMC statement and press conference. Then, she was definitely doveish. That gave the dollar a bid in Asia which turned out to be a fairly choppy session.

In Europe, the dollar added to its gains. USDJPY pushed above 121.00 while EURUSD touched 1.1125. Both currencies have backed-off since then.

USDCAD had a decidedly schizophrenic day, yesterday. It rallied straight up from the New York open, breaking resistance at 1.3355, touched 1.3415 and then retreated right back below the opening level. That has set the tone for today. USDCAD opened in the middle of the overnight range with Canada demand against EUR, GBP and JPY helping to offset US dollar demand. USDCAD has been drifting lower since New York opened, but remains in an uptrend.

The week is ending with on a more positive tone helped by a rally in global equity markets and a good showing with today’s US data.

Technical Outlook

The intraday USDCAD technicals are bullish while trading above 1.3310 with a break of 1.3360 extending gains back to 1.3415 and then 1.3460. A move below 1.3310 could extend losses to 1.3180. For today, USD Support is at 1.3310 and 1.3280. Resistance is at 1.3360, 1.3390 and 1.3415

Today’s Range 1.3280-1.3350

Chart: USDCAD 30 minute with intraday uptrend