INTRADAY: USDCAD Open 1.0530-35 Overnight Range 1.0520-40
original post on Saxo Bank’s Trading Floor
The USDCAD traded sideways in a narrow range ahead of today’s Canadian June GDP data (forecast -0.5%, m/m change, s.a) which will contrast sharply with yesterday’s US GDP gain consequently putting additional pressure on the Canadian dollar. US data releases include: Personal Income, Personal spending, Chicago PMI and Reuters/Michigan consumer sentiment index. Great Britain voted against joining in any military action in Syria which should help to reduce concerns of an imminent incursion but the US has naval vessels in the area and Obama sounds like he wants his own personal war.
The US and Canada Labour Day holiday on Monday will make for a short trading session although the USDCAD could spike on latent month end demand for dollars on portfolio rebalancing or in reaction to a poor GDP number. As usual, Friday profit taking flows will likely be the norm, suggesting that existing ranges will remain intact.
The short term USDCAD technicals are bearish wile trading below 1.0540 looking for a dip to 1.0490. A break above 1.0540 suggests a move to 1.0580 and then 1.0610. For today, USD support is at 1.0520, 1.0490 and 1.0460. Resistance is at 1.0540, 1.0560 and 1.0580
Today’s Range 1.0490-1.0560