USDCAD Open 1.0321-25 Overnight Range 1.0284-1.0336
Original post on Saxo Bank’s Trading Floor
The USDCAD traded like a floating currency overnight, rising from 1.0284 in early Asian trading before coming to life and spiking to 1.0335 resistance, which held. The catalyst is reportedly the rise in a Chinese money market rate (which I’m sure is on everyone’s radar screen) supposedly spooking traders into buying yen against the US dollar and the majors. Or maybe the China rate rise is just an excuse to explain a JPY rally. Global equity indices are all lower and US equity index futures are down as well. WTI oil is at $97.21
Today’s Bank of Canada rate announcement will be followed by the release of the quarterly MPR which is expected to be viewed as dovish.
The short term USDCAD technicals are bullish while trading above 1.0308 but need to break above 1.0335 or else risk reverting to the old standby range of 1.0270-1.0335. For today, USD support is at 1.0308 and 1.0285. Resistance is at 1.0335 and 1.0350
Todays Range 1.0305-1.0335