February 29, 2012
USD/CAD Open 0.9885-90 Overnight Range 0.9880-9958
|The Canadian dollar leaped through support at 0.9910 during the European session following a bigger than expected LTRO of $529.5 billion. Global equity indices and NY equity futures were all higher on the news, yet even in this improved risk -on environment, EUR/USD retreated . This may be due to a combination of "buy the rumour-sell the fact", profit taking and month end rebalancing flows. The CAD$ strength can be attributed to a bit of buying of CAD vs EUR supported by modestly firmer WTI prices. US data releases today include: GDP,QoQ (2.8%), Chicago Purchasing Manager (61.0) and the Fed Beige Book
The short term USD/CAD technical’s are bullish looking for further CAD$ gains to 0. 9810 and then 0.9730, following the decisive breach of the 0.9910-40 support zone. For today, USD support is at 0.9880,.09840 and 0.9810. US dollar resistance is pegged at 0.9910 and 0.9950.
The Canadian dollar had been relatively stagnant for the past few weeks but showed signs of life overnight, better reflecting the nearly 12% rise in WTI Crude since the middle of February. The CAD$ demand can be attributed to a mixture of month end demand for CAD$, EUR/CAD selling and the rumoured completion of a large sell CAD$ order attributed to a portfolio shift out of Canada.
And in other news, an asteroid called 2011 AG% is on a collision course for earth with an ETA of 2040. Fortunately, NASA is prepared . Billy Bob Thornton and Bruce Willis (or their heirs) will be coming out of obscurity and blasted into space in a new reality show called Armageddon For Real
Today’s Forecasted Range 0.9840-.9940