January 23, 2012
USD/CAD Open 1.0095-00 Overnight Range 1.0090-1.0160
|The Canadian dollar had a quiet start to the week in Asia due to the start of the Chinese New Year holidays. Faint signs of progress in the Greek debt talks plus continued optimism from last week’s European debt auctions continue to fuel the “risk on” trade”. The new, improved transparent FOMC meeting kicks off on Wednesday as does the annual world Economic Forum in Davos leaving markets vulnerable to headlines. Oil is $99.20 and gold is at $1,675.49.
The short term CAD$ technical’s are unchanged. A move below 1.0030-1.0080 USD support zone should lead to 0.9830. A move back above 1.0180 argue for further 1.0080-1.0280 consolidation. For today, USD support is at 1.0080, 1.0060 and 1.0030. Resistance is at 1.0130, 1.0160 and 1.0180.
Wednesday’s FOMC meeting, the Davis forum and Chinese New Year suggests a quiet trading day ahead, although the early indicators point to a continuation of the risk seeking theme, which is good for the loonie.
And in other news, Football fans were rueing the day they mocked sweet voiced Christine Aguilera for mangling the American anthem after hearing the Steven Tyler rendition in Foxboro on Sunday. Introduced as the lead singer of Aeros Smith, Mr. Tyler screeched like a disemboweled cat in a boiling cauldron of chowder. leaving football fans begging for the Air Force to demonstrate precision bombing by sticking a missile down his throat
Forecast Range of the Day 1.0060-1.0130