USDCAD Overnight Range 1.2855-1.2928
USDCAD drifted higher overnight on the back of profit-taking ahead of the weekend. This morning’s release of Canadian Manufacturing shipments for august was better-than-expected but well below the July result. The news was not a factor. USDCAD traders are looking ahead to Monday’s Federal election and Wednesday’s Bank of Canada interest rate decision and statement.
There wasn’t much happening in overnight FX sessions.A speech by Bank of Japan governor, Kuroda didn’t provide any fresh insight, or any insight for that matter. USDJPY just drifted sideways. The US dollar is ending the week down but managed to recoup some of its losses on profit taking. Next week’s European Central Bank meeting will be closely watched for any evidence that falling inflation will encourage new stimulus.
For today, USDCAD traders will keep their eye on WTI price movements as the break above $47.20/barrel could lead to another test of $50.00/b and send USDCAD lower.
USDCAD technical outlook
The intraday USDCAD technicals are bearish while trading below 1.2930 with the renewed push below 1.2900 pointing to another test of this week’s low of 1.2830. Minor support at 1.2970 could slow the dip while a move above 1.2930 would argue for 1.2830-1.2980 consolidation.
Today’s forecast trading range 1.2850-1.2930
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