February 22, 2012
USD/CAD Open 0..9978-83 Overnight Range 0.9955-0.9987
|The Canadian dollar bounced around in a fairly narrow range overnight. The loonie traded lower in early Asian markets then recouped all of its losses, only to reverse those gains during the European session. A mixed Chinese manufacturing report, a disappointing Euro zone PMI report and lingering uncertainty surrounding the Greece deal supported the US dollar. Today’s US data includes Existing Home Sales (Forecast +4.66m) Asian equity indices ended higher but European equity indices and NY equity futures are lower. WTI Oil is at $105.72/bbl and gold is $1,755.46.
The short term USD/CAD technical’s are bullish while the USD/CAD rate is trading above 0.9960 but needing a break of 0.9995 to extend gains to 1.0040. For today, USD support is at 0.9960, 0.9940 and 0.9910. Resistance is at 0.9985-90, 1.0010 and 1.0040
There isn’t much in the way of top tier economic data being released in the US or Canada, leaving currency traders to look to equities for direction. The WTI price above $105.00/bbl on the back of Iran tensions should also serve to limit CAD$ losses.
And in other news, researchers from Emery University have determined that whales and dolphins are so intelligent that they should be protected by a bill of rights. It is rumored that the researchers compared these aquatic mammal’s IQ to the current Canadian parliament and discovered that not only were Flipper and Free Willy smarter, the politicians barely qualified as bait.
Today’s Forecasted Range 0..9960-1.0005