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USDCAD In Narrow Ranges Pre-NFPs, Option Expiry Lower

CANADA
  • USDCAD has held particularly narrow ranges so far today, back at ~1.338 after earlier nudging below yesterday’s range but holding above Wednesday’s pre-FOMC low of 1.3359.
  • Equity futures mostly consolidate yesterday’s push higher just as WTI mostly holds its slide, whilst broader USD weakness sees CAD underperform most high beta peers.
  • Recent price action has taken USDCAD closer to firmer support at 1.3343 (Jan 12 low).
  • Payrolls is in the spotlight, doubly so with a blank CAD docket. Later on, option expiry for the NY cut could provide some downside bias, with a solid $0.9bn at 1.3315 (plus $0.3bn at 1.3320 and $0.4bn at 1.3345) albeit with a small offset of $0.5bn at 1.3510.

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