February 28, 2012 USD/CAD Open 0.9960-65 Overnight Range 0.9942-9992
|The Canadian dollar drifted higher in a quiet overnight session. The tone for markets is mostly positive, following the passage of the German vote for Greek aid while ignoring S & P’s declaration that Greece is in “selective default.” Asian and European equity indices are modestly higher. WTI Crude is trading at $108.00 while gold is at $1,777.56 US data includes Durable Goods (Forecast Jan. -1.0, ex transportation 0.0) S&P/CS Home prices and consumer confidence. No data from Canada.The short term USD/CAD technical’s have flipped to bearish targeting 0.9910 following the break of support at 0.9980. For today, USD support will be found at 0.9940 and 0.9910. Resistance is pegged at 0.9980. 0.9990 (200 day moving average) and 1.0020
The Canadian dollar appears to have regained its legs, having underperformed in the past few weeks despite a 12% jump in WTI oil price. This may be due to unconfirmed reports of large CAD$ selling due to a portfolio shift and in part due to selling of CAD$ vs EUR. Now, month end portfolio rebalancing flows are the wild card.
And in other news, Costa Cruise Lines had another bad day when the cruise ship, Costa Allegra, caught fire, killing their engines and leaving about 1,000 people adrift near Somali pirate waters. In response, Costa Cruise Lines will reevaluate the “all-inclusive” aspect of their cruises with the intent of removing “Life-Threatening Perils” from the agenda.
Today’s Forecasted Range 0.9910-.9990