USDCAD OPEN 1.0495-99 Overnight Range 1.0468-1.0499
See original post on Saxo Bank’s Trading Floor
The USDCAD shot to 1.0499 post FOMC minutes but couldn’t move any higher overnight. Positive PMI data from China and the Euro zone provided support to the improving global growth outlook stemming the rise of the US dollar following the FOMC minutes.
Today’s US jobless claims report (forecast +322,000) will be closely watched since Mr. Bernanke tied tapering to employment. If claims come in substantially higher than forecast, the US dollar should give back most of yesterday’s gains due to the assumption that tapering won’t begin until near year end. If they are lower than forecast, the USDCAD will test 1.0550
The short term USDCAD technicals are bullish while trading above 1.0440 but needing a break of 1.0500 (overnight high) to extend gains to 1.0550 A move below 1.0440 suggests a retest of 1.0370. For today, USD support is at 1.0470 and 1.0440. Resistance is at 1.0500 and 1.0550
Today’s Range 1.0460-1.0530