February 21, 2012 USD/CAD Open 0.9968-73 Overnight Range (including Monday) 0.9907-9976
|The Canadian dollar gave back all of Monday’s gains garnered in anticipation of a favourable outcome to the EU/Greece negotiations. The news that Greece would get another bail-out was treated as a “buy the rumour, sell the fact” event, with the US dollar recouping lost ground vs the EUR and the majors, despite news that China cut the RRR rate on Monday. There will be enough drama between now and March 14 (when Greece actually gets its hands on the money) and the Greek elections in April to ensure that the risk-on-risk off environment remains intact. European equity indices are all in the red but NY equity futures are slightly higher. Canadian Retail Sales is forecast +0.2%, momThe short term CAD$ technical’s are bullish while USD/CAD trades below 0.9980 with a test of 0.9880 in the cards. For today, USD support is at 0.9940, 0.9910 and 0.9880. USD resistance is at 0.9980, 1.0005 and 1.0030.
Today’s Canadian Retail Sales data should keep the positive Canadian dollar bias intact, supported by rising oil prices on the back of Iran tensions.
And in other news, proof that Financial Institutions have taken the lessons of the 2008 Credit melt-down to heart comes in the form of a $30,000 pre-approved credit line from Capital One for a dog. Capital One defended their actions stating that “due to the fact that the dog died 13 years earlier, our exposure was minimal
Today’s Forecasted Range 0.9910-0.9980