USDCAD Open 1.0284-89 Overnight Range 1.0282-99
original post on Saxo Bank Trading Floor
The USDCAD squeezed lower, almost reluctantly, overnight barely budging even with widespread US dollar selling in the aftermath of the Washington deal. Selling of CAD against EUR, GBP and JPY combined with a softer WTI ($100.99) and mixed Canadian economic data may be behind the loonie lethargy. China’s official 3Q GDP came in bang on with market consensus (7.8 percent, yoy) but the FX reaction was understated. Marketwatch has a story suggesting that current Chinese data suggests the economy is slowing. Canadian CPI will be released today, forecast to come in at 1.1 percent)
The USDCAD technicals are unchanged from yesterday. In the short term, the USDCAD technicals are bearish while trading below 1.0315, which will be tested on a move above 1.0305. A break of 1.0315 will lead to 1.0340. USDCAD faces a very congested support zone (trend-line 200 day moving average) in the 1.0240-70 zone.
Today’s Range 1.0275-1.0340