USDCAD Open 1.0870-74 Overnight Range 1.0853-1.0888
USDCAD was the only G-10 currency to muster a gain against a resurgent US dollar overnight. That wasn’t because of any particular underlying domestic factor but due to demand from cross trades. EURCAD and GBPCAD sank while CADJPY rallied. The prospect of an EU rate cut and delayed UK rate increases rejuvenated US dollar bulls. Today’s US data includes CPI, Jobless claims and the NAHB housing market index, all of which should support the view that the US recovery is gaining momentum and keep the US dollar bid.
The intraday USDCAD technicals are bearish while trading below 1.0880 but needing to decisively break support in the 1.0850-60 area to extend losses to 1.0805-20. A move above 1.0880 risks a retest of resistance at 1.0940. For today, USD support is at 1.0860, 1.0830 and 1.0805. Resistance is at 1.0880, 1.0910 and 1.0930
Today’s Range 1.0830-1.0890