USDCAD Open 1.1125-30 Overnight Range 1.1115-31
The overnight session saw the loonie trade like the a block of ice, frozen by a polar vortex waiting a thaw from GDP data and month end rebalancing flows. The rebalancing requirements are to SELL US dollars, not buy as I wrote earlier this week. Elsewhere, the FX markets were flapping like a Peking Duck near the cooking pot. Another aggressive Chinese devaluation of the Renmimbi, reportedly to squeeze bullish CNY positions and add an element of two way risk to trading. Not to be outdone, the EURUSD soared on higher than expected inflation data reducing risk of any easing at next ECB meeting.
The intraday USDCAD technicals are modestly bullish while trading above 1.1110 but needing to break resistance at 1.1140 and then again at 1.1160 to spark an additional rally. A move below 1.1110 risks a retest of 1.1050.
Today’s Range 1.1040-1.1140