Loonieviews January 29, 2014


USDCAD Open 1.1142-46 Overnight Range 1.1134-1.1185

The USDCAD was fairly choppy in a lively overnight session with traders "talking Turkey" ahead of today’s FOMC rate decision and statement. Yesterday’ late day announcement by the Turkish Central Bank that it was hiking the overnight lending rate to 12% from 7.75% and its overnight borrowing rate to 8% from 3.5% was well received in Asia. The news abruptly halted the rout in USDTRY, eased the risk aversion panic across the EM spectrum and boosted Asian equity indices. The Nikkei close up 2.7%. Europe was rather less enamoured. USDTRY pare its Asian gains and European equity indices were mixed. There isn’t any US data of note leaving the traders to cool their heels until the 2:00 pm EST FOMC announcement.

The short term USDCAD technical are bullish while trading above 1.1130 looking for further gains to 1.1225. A decisive break above the 1.1225-40 area will target 1.1640. A move below 1.1130 points to a dip back to 1.1080. for today, USD support is at 1.1130 and 1.1080. Resistance is at 1.1170 and 1.1210.

Today’s Range 1.1130-1.1210

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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