USD/CAD threatens the range bottom as risk trades improve | Forexlive

The S&P 500 is at the highs of the day, up 0.6% after trading lower early. The mood improved after the Fed’s Bostic said he considered risks roughly balanced and doesn’t “do more than we need to do” to get inflation under control.

The dollar has been reluctant to turn lower because bond yields have broken higher today but the Canadian dollar is fighting back. It’s being helped by a turn in oil intraday from as low as $77.23 to $78.06 last. It’s a sign the market is feeling more confident about global growth.

Technically, there’s a short-term range with a low just below 1.3600 that’s in danger of giving way. I wouldn’t expect a wave of stops but if Waller isn’t hawkish and tomorrow’s ISM services data is soft, then 1.3560-50 will quickly be in play.