Overnight Range 1.3126-1.3206
NOTE: This chart represents gain (or loss) of G10 currencies vs. the US dollar from NY close-July 22nd (4pm) to 5:45 am EDT July 25th
The G20 meeting concluded with the global finance ministers promising to “use all policy tools to lift growth”. FX traders said “how nice” and continued to fret about this week’s FOMC meeting, the Bank of Japan policy meeting and the end of the week portfolio rebalancing flows for month end.
European markets were a little livelier, buoyed by the stronger-than-expected German IFO data. The three major components, Current Assessment, Business Climate and Expectations beat the forecasts which gave EURUSD and Eurozone equity indices a bit of a boost. Nevertheless, the EURUSD downtrend from July 14th remains intact. GBPUSD remains heavy due to Friday’s soft data.
Oil prices continue to retreat although they are still above Friday’s low. Falling demand and oversupply are the key drivers of the bearish sentiment.
USDCAD is bid, supported by the dip in oil prices and the bearish outlook for crude. The prospect of a hawkish FOMC statement on Wednesday is not helping matters at all. There isn’t any US or Canadian data due today which means traders will look to WTI and equities for direction.
USDCAD technical outlook.
The intraday USDCAD technicals are bullish while trading above 1.3100 with the break above 1.3140 suggesting addition gains to the 1.3190-1.3200 resistance zone. A decisive break above 1.3220 would target 1.3290 and then 1.3460. A break below 1.3100 would alleviate the top-side pressure and target 1.2970. For today, USDCAD support is at 1.3130 and 1.3100. Resistance is at 1.3180, 1.3205 and 1.3220.
Today’s Range: 1.3140-1.3220
Chart: USDCAD 30 minute