The Canadian dollar, like the rest of the G-10 FX major currencies, traded in relatively narrow ranges in a somewhat subdued overnight session.

The euphoria about possible coronavirus vaccines started to fade in Europe, with the top equity indexes all posting losses at the Toronto open. Traders continue to keep a cautious eye on the elevated U.S. coronavirus cases and talk of measures to slow the rise, as well as the fall-out from the U.S. election.

GBP/USD is trading at the top of its $1.3194-$1.3255 range, underpinned by Brexit rumours and headlines. The U.K. Express reported that Prime Minister Boris Johnson was told by Chief Negotiator David Frost to expect a trade deal by next Tuesday. A contradicting report in another paper claimed that France would veto any deal unless the fishing rights issues were resolved in its favour. The short-term GBP/USD technicals are looking for additional gains above $1.3280 to $1.3350.

EUR/USD firmed on the back of the positive risk sentiment. The rally ran out of steam at $1.1884, ahead of expected sellers in the $1.1900 level.

Concerns that the latest measures implemented to stop the spread of the coronavirus will negatively impact Q4 growth also limited gains. The European Central Bank certainly thinks so, as there has been no shortage of policymakers warning about downside risks to the economy.

USD/JPY traded in a 104.25-104.59 range and has a negative bias while prices are below 104.80. The currency pair is under pressure in part because it is giving back some of the gains it achieved when the market first reacted to the coronavirus vaccine news. Also, U.S. Treasury yields slipped from their peak.

The antipodean currencies opened close to unchanged. The AUD/USD rally following the Reserve Bank of Australia minutes was short-lived, but prices continue to consolidate recent gains. NZD/USD traded similarly, but its gains lagged those of AUD/USD.

USDCAD traded narrowly, and prices ticked back to the top of the overnight range in Toronto trading, taking direction from U.S. equity futures. S&P 500 futures drifted lower in early trading, taking their lead from European bourses. The intraday USD/CAD technicals are rangebound in a $1.3050-$1.3150 band.

There are plenty of second-tier economic data releases in the U.S. and Canada today. They will be ignored in favour of Wall Street price action.

U.S. Retail Sales are expected to rise 0.5% m/m in October. They will not be a factor.

Rahim Madhavji is the President of, a Canadian currency exchange that provides better rates than the banks to Canadians

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