Loonieviews July 17, 2014


USDCAD Open 1.0742-46 Overnight Range 1.0731-1.0752

USDCAD appeared to be left alone overnight as traders tried to make sense of the currency’s reaction post BoC MPR. Buying USDCAD made sense based on the doveish bias of the report however the subsequent retracement suggests that traders expected the outcome. The US dollar remains supported following Yellen’s testimony in part because traders want to believe that Yellen is ever-so-slowly nearing the hawkish line. Today’s Eurozone CPI was as expected and thus, a non event.

Back in the day, a shooting war with Israel and Palestine, the virtual civil wars raging in Libya, Syria and Iraq, the never ending war in Afghanistan and a ratcheting up of tensions between Russia the Ukraine and the G-7 would have precipitated a stampede into risk aversion trades. Today, that news barely causes a ripple.

The short term USDCAD technicals are bullish while trading above 1.0720. The intraday USDCAD from yesterday’s peak of 1.0790 ended with the move above 1.0735 suggesting a retest of 1.0790. For today, Support USDCAD support is at 1.0735 and 1.0710. Resistance is at 1.0770 and 1.0790

Today’s Range 1.0735-90

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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