February 17, 2012
USD/CAD Open 0.9955-60 Overnight Range 0.9950-9970
***Canada CPI +2.5% yoy (Forecast =2.3%) Core 2.1% (Forecast 1.9)***
|The Canadian dollar managed to keep all of yesterday’s gains in a dull overnight session. helped by a bump in WTI Oil prices ($102.78). Yesterday’s risk off-risk on two step contributed to the rise in Asian equity indices and gave the USD/JPY a bid. The Eurozone/Greece version of "Paradise by the Dashboard Lights" will continue to play out over the weekend. However yesterday’s rally on the back of better than expected US economic data demonstrated Greek fatigue with investors preferring to view risk from a "glass half full perspective. US CPI ( forecast 2.8%; 2.2% ex food-energy) is released at 8:30am
The short term CAD$ technical’s are bullish looking for a break of support in the 0.9930-40 zone to extend CAD$ gains to 0.9880. For today, USD support is at 0.9930, 0.9910 and 0.9880. Resistance is at 0.9980, 1.0010 and 1.0040.
Today’s Canadian CPI data can be viewed in the context that it serves to diminish support for the minor risk that the Bank of Canada could pare rates to stimulate the economy. It is not a stretch to suggest that any CAD$ gains this morning can be erased this after Europe closes on position squaring and profit taking ahead of the long weekends in Canada and the USA.
And in other news, Vancouver cops are at it again. After spending the past 6 month’s washing the stink off from their pathetic performance during and after the Stanley Cup riot. They spent nearly 6 months "investigating" before they laid any charges . Apparently, part of the delay can be attributed to a large number of cops watching and emailing porn. To Serve (themselves) and Protect (their pensions)
Today’s Forecasted Range 0.9930-1.0010
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