USDCAD Open 1.0838-42 Overnight Range 1.0838-61
The USDCAD is slogging its way through thick, sticky support in the 1.0840-50 area aided in part by general US dollar weakness although FX activity across the board is mostly a notch above stagnant. ECB officials (Nowotny) continue to make noises that raise the odds for a rate cut next month but the lack for further EURUSD weakness indicates that a small cut is priced in or scepticism that the words will lead to action. Today’s US data ( Durable Goods, S&P Case Schiller, Markit PMI (flash) and Consumer Confidence )may provide some direction for traders.
The intraday USDCAD technicals are bearish with the break of 1.0850 support suggesting further losses to 1.0805. A break of 1.0805 will extend losses to 1.0750. 1.0840 will be sticky, however the downtrend remains intact below 1.0870.
Today’s Range 1.0805-1.0850