February 14, 2012
USD/CAD Open 0.9985-90 Overnight Range 0.9980-1.0025
|The Canadian dollar enjoyed a loopy trading session overnight. It came under pressure in early Asia when Moody’s lobbed a stink bomb into the markets, rather than a love filled valentine. Moody’s chopped the credit ratings of Italy, Spain and Portugal and shifted their outlook to negative for the UK and France which initially triggered demand for US dollars. Meanwhile the Bank of Japan injected additional liquidity into domestic markets, weakening the yen. However, a better than expected German ZEW confidence survey combined with strong Italian bond auction results, helped to reverse the course and the USD gave back earlier gains. WTI Oil is trading at $101.45/bbl on rising tensions with Iran. Today’s US release of Retail Sales (forecast 0.8%) will be the early morning focus.
The short term CAD$ technical’s are bullish as the short term daily USD/CAD downtrend channel remains intact, while trading below 1.0030. For today, the USD has support at 0.9977 (200 day moving average), 0.9930 and 0.9880. to the top, USD resistance is at 1.0010 and 1.0030
The Canadian dollar may get a boost if the US retail sales data is better than expected on the assumption that an improving US economy will lift Canadian growth prospects as well.
And in other news, hopeless romantics wishing to woo a loved one but who perhaps neglected to make a reservation, can take their date to Newton Creek Wastewater Treatment plant in Brooklyn, New York, where they will receive a Hershey kiss and a tour. Forget, saying it with flowers-say it with Feces.
Today’s Forecasted Range 0.9940-1.0010