USDCAD overnight Range 1.3092-1.3121
There has never been a bandwagon that Hollywood wouldn’t jump all over. Fake News is the hot topic in media land so naturally, Hollywood wanted to be front and center and produced some of their own, in spectacular fashion. Bonnie and Clyde (google it) announced the best picture as La La Land. Then said Oop’s no its not.. It is Moonlight. It was an easy mistake to make. How can the best picture be a movie nobody saw?
The nauseating Academy Awards production was enough to keep Asia FX traders in sick bay and led to fairly quiet Asia markets.. AUDUSD and NZDUSD inched higher on improved outlooks for their respective economics. USDJPY traded sideways in a narrow range
Sterling was under pressure from the open in Asia due to reports that Prime Minister May’s government would let Scotland hold another referendum on staying in the UK. GBPUSD dropped from 1.2468 to 1.2384 just before New York opened.
EURUSD meandered in Asia and edged higher in Europe. Traders are keeping an eye on French politics, Eurozone data and awaiting President Trumps speech on Tuesday. Eurozone Economic Sentiment was as expected and slightly positive.
Oil prices drifted higher within a narrow range supported by the Commitment of Traders report indicating speculators are happily building long positions.
USDCAD was directionless and traded in a tight band. Friday’s rise in domestic inflation offset the negative tone from the decline in Retail Sales earlier in the week. Traders are marking time ahead of event risk later this week
It has been a slow start to the day and even Durable Goods data barely caused a ripple. January Durable Goods rose 1.87% (forecast 1.7%)ex-transportation dropped 0.2% (forecast 0.5% gain). However, the risk of US dollar selling for month end portfolio rebalancing and President Trumps speech, both on Tuesday have kept traders close to home.
USDCAD Technical outlook:
The USDCAD are bearish while trading below 1.3210 looking for a break of support in the 1.2970-1.3000 zone to extend losses. The intraday technicals show USDCAD consolidating within a 1.3070-1.3140 band. A break above 1.3140 will lead back to 1.3180 while a break below 1.3070 will lead to 1.3020.
Today’s Range 1.3070-1.3140
Chart: USDCAD 30 minute
USDMXN continues to consolidate last weeks’ losses and remains in a modest downtrend while prices are below 19.8720, looking for a move below 19.5825 to extend losses to 19.0200. However, trading will remain light ahead of Trumps speech.
Chart: USDMXN 1 hour