USDCAD Open 1.0293-98 Overnight Range 1.0285-97
Original post on Saxo Bank’s Trading Floor
The USDCAD flat-lined overnight, barely budging from Friday’s close which is understandable ahead of tomorrow’s US payrolls report for September. Consensus may be for a gain of 180,000 jobs but there are more than a few major banks looking for a substantially higher number. The prevailing wisdom is that the government shutdown and the change in leadership at the Fed means tapering is pushed back into Q1 of 2014. What would an NFP gain of 220,000 due to that school of thought? worse than expected Japanese trade data gave USDJPY a boost while the rest of the majors traded fairly robustly in very narrow ranges. Asian equity indices closed up and European equity indices are mixed. NY equity index futures are higher to start the week. Gold is $1,314.40 and WTI oil has dipped below $100.00/bbl to $99.90
The proximity of USDCAD support congestion in the 1.0240-75 area, WTI oil below $100.00/bbl and tomorrows US payrolls report, should keep USDCAD bid today.
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 1.0285-1.0330