Loonieviews September 2, 2014


USDCAD Open 1.0912-16 Overnight Range 1.0870-1.0917

The summer is unofficially over, the US dollar is bid and the Loonie headed south. USDJPY moved higher on anticipation of an "Abe friendly" minister being appointed to run the ministry in charge of Pension reform. The RBA left rates and the statement unchanged while still complaining about an "overvalued currency. The EUR is on the defensive ahead of the ECB meeting. Tomorrow’s BoC meeting is expected to end with another doveish statement which is one of the reasons for the weaker Canadian dollar today.

US Markit and ISM PMI’s are out this morning which should provide additional support to the US dollar.

The intraday USDCAD technicals are bullish while trading above 1.0870 supported by the overnight break of resistance at 1.0905. A break of resistance at 1.0920 would lead to 1.0990 while a break of support at 1.0902 will see a retest of 1.0880. The short term technicals remain bullish above 1.0860.

Today’s Range 1.0890-1.0940

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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