US dollar drifts higher
USDCAD Open (6:00 am) 1.3030-34 Overnight Range 1.3011-1.3046 30Aug16
NOTE: This chart represents gain (or loss) of G10 currencies vs. the US dollar from NY close (4::00pm) to Aug 30, 6:00 am EDT
The US dollar squeezed out additional gains across the G10 spectrum in a subdued trading session. Traders were overly eager to get involved ahead of Federal Reserve Vice Chair Stanley Fisher’s interview on Bloomberg They are also a tad concerned about month end rebalancing flows and Friday’s nonfarm payrolls report.
Mr. Fisher’s Bloomberg interview was a non-event.
USDJPY declined in Asia but that move was short lived on verbal intervention by a Ministry of finance official. It opened in New York near the overnight high. EURUSD traded sideways within a narrow 1.1155-91 band. GBPUSD is in a small downtrend looking for a retest of 1.3000. Euro area data was ignored.
The Canadian dollar remains at the mercy of US dollar sentiment and at the moment, that sentiment is bullish. USDCAD ignored the minor rally in WTI which climbed to $47.43/b from a low of $46.91
The Canadian dollar may get a bit of relief if today’s Raw Materials, Current Account and Industrial Production data surpass forecasts.
USDCAD technical outlook.
The intraday USDCAD technicals are bullish while trading above 1.3020 looking for a break of resistance in the 1.3060-80 zone to extend gains to 1.3140. A move below 1.3020 would lead back to 1.2950. for today, USDCAD support is at 1.3020 and 1.2990. Resistance is at 1.3060, 1.3090 and 1.3110.
Today’s Range 1.2990-1.3080
Chart: USDCAD 4 hour