The Canadian dollar climbed steadily overnight on speculation that China may be forced to cut rates to stimulate a slowing economy. Meanwhile, another meeting in Europe, this time with Merkel and the IMF gave optimists hope that EU leaders are working toward a debt crisis resolution. The EUR rose vs. the US but it is still below the 2011 low of 1.2711. Bearish EUR technical’s targeting the 1.1800 zone don’t bode well for CAD$ bulls. Global equity indices are all higher as are NY equity futures. WTI Oil is $102.63/bbl and gold is $1,629.86
The short term CAD$ technical’s are mixed CAD bears see the current retreat from 1.0330 as merely corrective, looking for a move to 1.0420. CAD bulls are looking for a break of 1.0160 and then 1.0080 to open up a move to 0.9890. For today, USD support is at 1.0160 and 1.0130. Resistance is at 1.0210 and 1.0240.
The Canadian dollar continues to be exposed to EUR/USD moves and the bearish technical outlook in the EUR suggests that CAD$ upside is quite limited.
And in other news, math teachers at an elementary school in Georgia are under fire for using examples of slavery to pose math problems. i.e. “Each tree has 56 oranges. If 8 slaves picked them equally, how many would they pick” The math questions have be revised to: If two pasty white math teachers were thrown in a holding cell with 6 Crips, how many new friends would they get on facebook?
Forecast Range of the Day 1.0130-1.0210