NYC snow day – FX slow day
USDCAD Open 1.2475-80 Overnight Range 1.2435-1.2495
FX markets were a tad frothy but otherwise trading sideways. The difference is that for a few currencies the trading ranges were wide. USDJPY tested higher but didn’t like the air there and reversed itself. EURCHF jumped 0.0200 points to start the European session and the fell just as fast.
New York City essentially closed itself starting at 11:00pm last night declaring a Snow Day fearing a 3 foot snowfall. They got about a foot. If you fear the weather forecasters, then the weather forecasters have won! The success and ease of shutting down New York City for this storm as emergency planners salivating for the next one. Plans are being finalized to close the city on Feb.14, when “love is in the air”, the Ides of March” and April Shower Shirley.
US Durable Goods missed the mark. December orders were -3.5% vs forecast of 0.5% while the ex-Transportation data was -0.8% rather than 0.6% forecast. The dollar gave up some ground against EUR, GBP and JPY on sentiment that the data supports a benign FOMC statement tomorrow.
USDCAD, on the other hand, failed to derive any benefit from the weaker US dollar against the other majors, likely because of Canadian dollar selling for EUR, GBP and JPY. USDCAD continues to be supported by the soft oil price outlook and the prospect of further rate cuts by the Bank of Canada.
The intraday USDCAD technicals are bullish while trading above 1.2420. A move below this level suggests further losses to 1.2360 and possibly 1.2310. A break above hourly resistance at 1.2485-95 targets 1.2530
Today’s Range 1.2420-90