Loonie sidelined as FX awaits Draghi
USDCAD Open 1.1360-64 Overnight Range 1.1342-1.1372
USDCAD action mirrored the rest of the G-10 action which was actually inaction, for the most part, with markets awaiting the ECB and the Sermon from Mount Draghi. Mr. Draghi is almost universally expected to announce plans for QE in January. Despite dropping from 1.3680 in July, to 1.2310 currently, some major bank positioning analysis for EURUSD suggests that positioning is not that extreme, leaving lots of room for downside. Hmmmm, what could go wrong?
USDCAD managed to keep most of yesterdays, post Bank of Canada statement gains. At best the statement was neutral and certainly not hawkish. Oil price concerns trump improvement in output gap, especially since output gap data was far staler than WTI prices.
USDCAD technical outlook
The intraday USDCAD technicals are bearish while trading below 1.1390 but needing a break of 1.1320 to extend losses to the short term uptrend line, currently at 1.1280. A move through 1.1390 points back to 1.1440
Today’s Range: 1.1330-1.1390