January 27, 2012
USD/CAD Open 1.0010-15 Overnight Range 0.9995-1.0047
|The Canadian dollar continued yesterday afternoon’s swoon in Asia but managed to recoup all of its losses in the European session .An Italian bill auction saw lower yields and hopes of a Greek debt deal before the end of the month helped to reverse yesterdays trend. Asian equity indices were mixed, European indices are all slightly lower but US equity indices futures are all positive. The US releases GDP (forecast 3.0%, qoq, annualized) and University of Michigan Confidence (74.0) WTI Oil is at $100.08 and gold glistens at $1,722.50
The short term CAD$ technical’s are bullish while trading below 1.0060, however, as evidenced by yesterday’s trading, moves will be erratic. For today, USD support is at 0.9980 and 0.9940. Resistance is at 1.0010 and 1.0040.
The Canadian dollar will grind higher in an erratic US dollar downtrend channel, but stay vulnerable to safe haven demand for US dollars in the event of nasty headlines on the European debt situation
And in other news, Newt Gingrich, presidential wannabe, promises to have a permanent moon colony by the end of his second term. He plans on funding the project from sales of moon mined “Green Cheese” and expects that his personal “open marriage” will allow him to hit on the local extraterrestrials.
Forecast Range of the Day 0.9970-1.0030