Loonieviews February 23, 2012

February 23, 2012

USD/CAD Open 0.9980-85 Overnight Range 0.9960-1.0010

The Canadian dollar went along for the ride, rising in tandem with a weak US dollar vs Europe on the coattails of a modestly better German IFO report, which also boosted commodity prices. WTI Oil is trading at $106.33 and gold is at $1,776.38. The ruling Australian Labor party has announced a quick leadership vote for Feb.27 which could see the current Prime Minister replaced with her predecessor. In China, the Premier is reportedly planning to target growth of less than 8% in a March 5 address, which could dampened the current global growth euphoria. Today’s US data releases include Jobless claims (forecast 355K) and House Price index (forecast 01.%, MoM)

The short term USD/CAD technical’s are mixed as the currency pair is locked within a 0.9930-1.0030 range and needs a break of either side to extend. Meanwhile the dominate trend is still for a weaker US dollar, stronger CAD$. See chart below. For today, USD support is at 0.9960, 0.9930 and 0.9910. Resistance is at 0.9990, 1.0010 and 1.0030

Rising commodity prices and a steadily improving US economy will serve to limit CAD$ downside and allow for a slow grind higher.

And in other news, a new Facebook app allows users to post a status update even after you are dead. It is unclear if you become "Single", In a Relationship " or "Buried" but one thing is for sure, Capital One will offer you a credit card.

Today’s Forecasted Range 0..9960-1.0005

Categories Markets

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