USDCAD Overnight Range 1.2310-1.2358  

USDCAD edged higher in a thin overnight market, caught up in a combination of general US dollar strength and a small decline in oil prices.News that Canada’s Hudson’s Bay Corporation (HBC) was buying a German retailer for EUR2.38 billion, may have contributed to the USDCAD demand although that conclusion is a bit of a stretch.

The weekend news that the Greece/EU negotiations appeared to have collapsed drove the US dollar higher across the board in a thin Asian session.  The move wasn’t sustained in Europe and the US dollar has given back most of its gains.  This morning’s US data has been mixed. The NAHB housing starts index beat forecasts (Actual 59 vs. forecast 56) while both Industrial Production and Capacity utilization missed.  All in all, it was a slow start to the week.

Canadian and US data is scarce until Wednesday’s FOMC meeting leaving headlines and oil prices to drive USDCAD direction. El

USDCAD technical outlook

The intraday technicals are bullish while trading above 1.2320 looking for a break of resistance at 1.2360 to extend gains to1.2440. A move below 1.2320 will lead to another test of 1.2280 and possibly back to 1.2240.

Today’s Range 1.2310-60

Chart: USDCAD hourly                                         Larger Chart