February 8, 2012
USD/CAD Open 0.9950-55 Overnight Range 0.9938-.9960
|The Canadian dollar didn’t make much headway overnight even as the US dollar retreated against AUD, NZD and EUR on dubious euphoria about a dead-line missing, but pending Greek debt deal. Asian and European equity indices are all higher on hopes that global growth is recovering and the Eurozone debt risk is fading. Bernanke’s comments to the Senate Budget committee yesterday, suggested that the FED won’t be raising interest rates any time soon, despite the improvement in last Friday’s jobs report.
The short term CAD$ technical’s are bullish. The USD/CAD is in a well defined down trend , capped by 1.0225 and basing at .9850 today. See below:
For today, USD support is at 0.9940, 0.9910 and 0.9880. Resistance is at 0.9980, 1.0005 and 1.0025
The Canadian dollar is struggling to make gains as commodity prices rise and risk aversion due to the European debt crisis dissipates. The lack of upside momentum is more perplexing when you consider the number of reserve managers that are on record to be adding to their CAD$ holdings, in addition to the improving outlook for the US economy.
And in other news, the nasty winter weather in Europe continues to exact tolls from unprepared drivers. Yesterday a truck full of saurkraut wiped out and dumped its load on an autobahn. The freezing temperatures turned the pickled cabbage into impassable barriers , stranding hundreds of drivers. Needless to say, the krauts were sour.
Forecast Range of the Day 0.9910-.9980