February 7, 2012
USD/CAD Open 0.9985-90 Overnight Range 0.9955-9990
|The Canadian dollar fluttered around aimlessly in a narrow range, trying to find a reason to continue its upward trajectory. Overnight, the Australian dollar took off like a scared kangaroo when the RBA surprisingly left interest rates unchanged, at 4.25% citing “generally improved’ financial markets. USD/JPY firmed on a report that the Bank of Japan conducted “stealth” intervention in November. Meanwhile, the Greek debt negotiations continue to drag on amidst a general strike by a population not particularly thrilled with the proposed austerity measures. The AUD equity index was higher but the Nikkei and Hang Seng were down as were all the European equity indices. NY equity futures are negative.
The short term CAD$ technical’s are remain bullish in the confines of a .9880-1.0060 Canadian dollar uptrend channel. For today, USD support is at 0.9940 and 0.9910. Resistance is at 1.0010 and 1.0040
The Canadian dollar continues to trade with a bullish bias, predicated on a view that the ever improving US economy will drive demand for Canadian exports, conveniently ignoring the default risks in Europe
And in other news, Severe weather is wrecking havoc throughout Europe with massive snow storms in England, France and Italy. It wasn’t enough for the Europeans to destroy our savings accounts with their fiscal mismanagement, now they’ve gone and stole our weather, as well.
Forecast Range of the Day 0..9940-1.0010