Forex News Traders

[Ataglance2]

14:54 USD/CAD: Sideways Chop As Market Weighs Odds New York, January 14th. The overnight weakness in the buck continues to forestall any serious topside foray today. Traders are content to bob and weave in tight ranges as they wait to see what the new theme will be now that the Fed cut of 50bp seems to be fully discounted, and that the likelihood of an ECB rate hike increases if the rhetoric of European officials is to be taken seriously.
Tarred by the same "weak North American growth" brush, the Loonie is chopping back and forth between 1.0165/85. Traders note that a large Swiss man tried his hardest to hammer USD/CAD through 1.0150 this morning, having to settle for lows between 45-48 on the various platforms, traders also note that sub- 1.0150 bids were in abundance, and soon popped the pair back up. New Yorkers note that on Friday there was strong interest to hedge USD flows above 1.0200, and are confident both US corporates and Corporate Canada will be back in on the offer today. Spot trades at 1.0175 as traders wait for directional flow to show them the way. Plain vanilla 1.0200 strikes continue to overhang the market, but expire at 10.00 AM.