FX Majors Choppy Inside Narrow Ranges

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FX markets were in full consolidation mode overnight

The majors were choppy but activity was confined to this week’s week-defined ranges. The Paris terrorist attack and uncertainty around the April 23, French election kept traders on the sidelines. The US dollar opened in New York with tiny gains against EUR, GBP, and NZD.  It was almost unchanged against CAD and CHF while AUD and JPY inched higher.

In Asia and Europe, the antipodeans bopped around inside narrow ranges with a AUDUSD getting a bit of support from slightly higher iron ore prices.

USDJPY slipped ion a bit of risk aversion selling after the Paris terrorist attack but remains well above this week’s 108.17 low.

EURUSD traders ignored better than expected Eurozone PMI data and sold EURUSD from 1.0736 to 1.0690.  concerns that the Paris terrorist attack could affect Sunday’s election results is behind the move.

The UK Retail Sales report was weak. (March Retail Sales -1.8% vs. forecast -0.2%) GBPUSD dropped from 1.2830 to 1.2783

USDCAD traders should be busy, at least for a little while, following this morning’s inflation report. Canada March CPI is expected to be 1.8%, year over year, down from 2.0% posted in February. If CPI surprises to the upside, USDCAD will decline on increased expectations that the BoC will hike rates in Q4. If CPI surprises to the downside, USDCAD will rally, in the believe that the BoC is right to be cautious.

The US data includes Markit Manufacturing PMI and Existing Home Sales.  However, French election uncertainty suggests that FX trading action in New York won’t be any different than what occurred in Europe and Asia.

Overnight Ranges

21-Apr-17 High Low
USDCAD 1.3470 1.3478 1.3460
EURUSD 1.0705 1.0736 1.0697
USDJPY 109.14 109.41 109.07
GBPUSD 1.2793 1.2832 1.2783
USDCHF 0.9988 0.9998 0.9966
AUDUSD 0.7531 0.7539 0.7517
NZDUSD 0.7006 0.7015 0.7001
USDMXN 18.8535 18.8591 18.7823
WTI   50.67 50.83 50.54
Close 4:00 pm EDT-Open 6:00 am EDT

USDCAD Technical outlook:

The intraday USDCAD technicals are bullish while prices are above 1.3420 and looking for a break of resistance in the 1.3490-95 area to extend gains to 1.3550 and then 1.3600.  A move below 1.3460 would extend losses to 1.3420 and then 1.3360.   If 1.3360 breaks it would suggest that a short-term top is in place at 1.3495 and lead to 1.3260-1.3490 consolidation

Today’s Range 1.3420-1.3520

Chart: USDCAD 30 minute







Further Reading


Coronavirus spread fears linger – USD strong – AUD at 11 year lows

This week the US Dollar was touching three-year highs when valued against a basket of major currencies. The greenback’s traditional role as one of the safe-haven currencies is helped by a domestic economy that is largely immune to the threats of the coronavirus.

Last update: 22 Feb, 2020

Coronavirus unnerves currency markets

The strong start to the year for “risk-on” currencies is already a distant memory.

Posted: 3 Feb, 2020

New Year Optimism Retreats on US/Iran Tension

The threat of a proxy war between the US and Iran in Iraq has pared back some of the recent gains of “risk-on” currencies.

Last update: 8 Jan, 2020


Posted to: News

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

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