USDCAD Open 1.1022-27 Overnight Range 1.1016-44
The USDCAD finally broke stubborn support in the 1.1040-50 level but the ensuing move lower was sluggish-almost reluctant. The catalyst may have been the surprising Australian Retail Sales and Trade data that handily beat forecasts causing AUDUSD to spring higher. The BoE left rates unchanged and was a snooze-fest as expected. Meanwhile, the ECB also left rates unchanged, surprising some economists (about 25% of them) and now all ears are on Mr. Draghi’s press conference at 8:30. If he fails to spark any additional speculation of looming rate cuts EURUSD may drift higher while the rest of the currencies spin their wheels ahead of tomorrow’s US and Canada employment data.
The short term USDCAD technical are bearish while trading below 1.1040 but needing a break of 1.1010 to extend losses to 1.0980 and then 1.0960. A move above 1.1060 risks further 1.1010-1.1110 consolidation
Today’s Range 1.0980-1.1060