USDCAD Range 1.3219-1.3272
This morning US PPI data failed to have an impact in currency trading. G-10 currencies are content to meander within the confines of yesterday’s ranges while traders kept an eye on equities. US equities are drifting lower, in line with a similar move in Asia and Europe.
FX markets are ending an interesting week on a dull note. Singapore was closed for elections which sucked a ton of liquidity out of markets while a lack of top tier data and quiet politicians did the rest. A fresh report from Goldman Sachs painted a fairly bleak outlook for oil prices which contributed to a small dip in WTI.
USDCAD was sidelined in Asia and a rally in Europe was short-lived. The Canadian dollar outlook remains married to WTI prices and the prevailing sentiment for the US dollar. Wednesday’s Bank of Canada statement was fairly positive except for the references to China risks and comments about how a weak currency has helped the economy. Perhaps the thinking is if USDCAD at 1.3300 is boosting economic growth, then at 1.4500 rate it would turbo-charge the economy.
USDCAD continues to chop around within a 1.3160-1.3320 range but unable to generate enough momentum to extend gains or losses. The underlying sentiment is bullish for a test of 1.3450. For today, USD support is at 1.3210 and 1.3160. Resistance is at 1.3270 and 1.3320
Today’s Range 1.3210-1.3290
Chart: USDCAD 4 hour with uptrend