USDCAD Overnight Range 1.2952-1.3005
USDCAD dipped initially on the release of the CPI data (Actual 2.3%, Core 1.0% y/y) which was in-line with forecasts and a tad on the “ok” side. The move was exceedingly brief and within seconds the Loonie was ringing the 1.3000 bell, aided in part by better than expected US housing data. It has since retreated but the dip was shallow.
Overnight trading was subdued. The Loonie drifted quietly in Asia where a number of centers were closed for holidays to celebrate end of Ramadan. The markets weren’t much livelier in Europe, either. It appears that with the curtain coming down on the final act in the Greek/EU drama (or at least for intermission), the signing of a US and friends nuclear deal with Iran and Janet Yellen’s testimony out of the way, traders had nothing to worry about and nothing to do.
In the UK, Mark Carney tried to fill the void. He opened up a can of worms last Tuesday when he started talking about rate hikes. Those remarks were overshadowed by Greece, Iran, Yellen and China so he took another swing of the bat yesterday and hinted a rate hike around the “turn of the year”. This morning, he is tripping over his tongue trying to unsay what he said about the direction and timing of UK interest rate moves.
USDCAD is still bid and it wouldn’t be out of character for this currency pair to make a late day push and close above 1.3000
The intraday USDCAD technicals are bullish while trading above 1.2910 with minor support seen at 1.2950 and looking to extend gains to 1.3050. There is a lot of resistance between 1.3000 and 1.3050 dating back to 2008-2009. A move below 1.2950 will meet strong support in the 1.2880-1.2910 area. For today, USDCAD support is at 1.2950, 1.2920 and 1.2890. Resistance is at 1.3005 (intraday high) and 1.3050.
Today’s Range 1.2960-1.3030
Chart: USDCAD daily showing resistance zone above 1.3000 Larger Chart