February 27, 2012
USD/CAD Open 1.0030-35 Overnight Range 0.9977-1.0050
|The Canadian dollar declined steadily overnight with the US dollar gaining in Europe, in part due to concerns that the G-20 rejection of more funding for the Euro zone gives the sovereign debt crisis a second wind. Also, rising commodity prices particularly oil could exacerbate a European recession. Global equity indices and NY futures are all in the red. WTI Oil is at $108.57 and gold is $1,766.55.
The short term USD/CAD technical’s are bullish following the break above resistance at both 0.9980 and 1.0005, looking for a test of 1.0090, which is the top of the US dollar down-trend channel. For today, USD support is at 1.0030, 1.0010 and 0.9980. Resistance is at 1.0060 and 1.0090
The Canadian dollar has struggled to participate in the recent bout of US dollar weakness, in part due to reportedly steady selling of CAD against JPY and EUR. However, WTI oil prices around $108/bbl should help to limit CAD$ losses.
And in other news, George Clooney pulled out all the stops in hopes of clinching a ‘Best Actor" award at the Oscars. Unfortunately, his clumsy attempt at French kissing Billy Crystal failed to sway the elderly academy voters who preferred Jean Dujardin, who was acting in the type of film most of them had worked on.
Today’s Forecasted Range 0.9980-1.0050