February 13, 2012
USD/CAD Open 0.9985-90 Overnight Range 0.9975-1.0017
|The Canadian dollar has recovered most of last week’s Thursday-Friday losses on news that Greece has approved the austerity measures demanded by the EU . Despite the fact that the EU finance ministers still need to give their blessing to the deal, the US dollar declined against everything accept the JPY and Kiwi. Global equity indices and NY equity futures have all risen on the news. WTI oil is up 0.93 to $99.60/bbl and gold is now at $1,730.69, a gain of $8.73/oz. There isn’t anything in the way of data today from the US or Canada.
The short term CAD$ technical’s are bullish looking for a retest of support in the 0.9930-40 area, enroute to 0.9880. The core USD/CAD downtrend channel remains intact but it’s breadth, 0.9980-1.0160 allows for a lot of volatility. For today, USD support is at 0.9970 and 0.9940. Resistance is at 1.0005, 1.0020 and 1.0040
Investor optimism surrounding the Greek parliament’s decision to cave into the demands of the EU in return for about $140 billion have sparked another round of "risk seeking" trading. However, the real question is "How long will the current government last and will the new government be bound by their decisions?
And in other news, an inventive Swiss fellow has installed an actual working wood stove in the front seat of his Volvo. He claims that the manufacturers heater is unable to deal with the extreme cold. Coincidently, whenever he hits a pot hole, Jerry Lee Lewis belts out " Great Balls of Fire".
Forecast Range for Today 0..9940-1.0030
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