USDCAD Open (6:00 am EDT) 1.3330-33 Overnight Range 1.3316-1.3343
“Spring has sprung, the grass has ‘riz. I wonder where the traders is.” The bad poetry pretty much sums up the overnight FX price action.
The US dollar opened in New York with tiny losses against GBP, EUR and JPY and near to unchanged against CAD, AUD, NZD and CHF, compared to Friday’s close.
Asia opened with a modest risk-seeking bias after reports that the American’s backed off demands that China curb some subsidies, in what is seen as evidence that the US is motivated to get a deal. However, the positive sentiment faded by the time Europe opened for business. USDJPY consolidated last week’s gains in a tiny 111.90-112.08 range with prices underpinned by 10-year US Treasury yields at 2.558%.
President Trump complained about the Fed again on Sunday, tweeting “If the Fed had done its job properly, which it has not, the Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%…with almost no inflation. Quantitative tightening was a killer, should have done the exact opposite!” Traders ignored him.
GBPUSD is supported by the Brexit extension, but without any fresh developments, there wasn’t much incentive to take prices above resistance in the 1.3140 area. Support is seen at 1.2980.
EURUSD see-sawed in a 1.1300-20 band and remains in a downtrend while prices are below the 1.1390-1.1440 area. The ECB is dovish, and that view was reinforced by a series of ECB officials last week.
USDCAD is adrift in a 1.3250-1.3460 range with support from the Bank of Canada’s dovish bias undermined by firm oil prices. The quarterly Business Outlook Survey is due today. A more upbeat than expected report would suggest a test of support in the 1.3270 area while disappointment will extend gains to 1.3380.
The Canadian and US economic calendars are empty.
USDCAD Technical Outlook
The intreaday USDCAD technicals are modestly bullish while prices are above 1.3310, looking for a break above 1.3340 to extend gains to 1.3380 and then 1.3420. A break below 1.3310 will lead to a probe of the resistance zone in the 1.3250-90
Today’s Range 1.3300-1.3380.
Chart: USDCAD 30 minute