LOONIEVIEWS 11 Dec 14
Strong US Retail Sales report will add to Loonie’s woes
USDCAD Open 1.1469-74 Overnight Range 1.1451-1.1495
It was another choppy, churning FX session overnight and USDCAD tried and failed to break above resistance at 1.1500 and below support at 1.1400 with traders keeping an eye on oil prices. The fact that WTI did not make another new low kept USDCAD from making new highs. Meanwhile, yesterday’s Bank of Canada FSR proved to be a non-event once the misleading headlines were ignored. For example National Post headline screams “Bank of Canada warns house prices are overvalued by up to 30%”. However the BoC goes on to say that “This risk continues to be rated as “elevated.” The probability of this risk materializing is low, but if it were to materialize, the effect on the economy”. In addition the conclusions are similar to what they were six months ago. USDCAD prices continue to mirror WTI trading.
On tap today, US Retail Sales and a BoC governor speech in NY. A strong print of Retail Sales will provide additional support to USDCAD.
The intraday USDCAD technicals are bullish while trading above 1.1420 with minor support seen at 1.1450. Resistance is at 1.1500 and 1.1530. A break of 1.1420 will lead to 1.1380.
Today’s Range: 1.1420-1.1520