USDCAD Open 1.0319-23 Overnight Range 1.0290-1.0322
Original post on Saxo Banks Trading Floor
The USDCAD started the week uneventfully but started to track higher in Asia, accelerating on the break above 1.0310 during the early European session. It now seems like we are in for a repeat of last week’s action with another probe of 1.0350 in the cards. The loonie wasn’t alone in its performance, joined by kiwi and ozzie, while EUR, GBP CHF and JPY all rallied in what has been described as "low volume trading" (except for JPY). Buying US dollars on risk aversion over a possible US debt default seems rather ridiculous, so likely the loonie (AUD and NZD) weakness is due to selling against the crosses (EUR, GBP CHF and JPY). A slightly lower WTI oil price of $102.65 and a downtrend in this commodity may also be undermining USDCAD. There isn’t a lot of data to drive trading so Washington updates will continue to keep traders on edge.
The short term USDCAD technicals are modestly bearish while trading below 1.0320 but need to see a break of 1.0290 to extend losses to 1.0250, although, 1.0270 will also provide support. Above 1.0320 puts 1.0350 in play with 1.0335 the first line of defence.
Today’s Range 1.0290-1.0320