March 27, 2012
|USD/CAD Open 0.9915-20 Overnight Range 0.9904-0.9920
The Canadian dollar held on to yesterday’s gains in a tepid risk-on environment sparked by yesterday’s Bernanke comments alluding to QE III. The Nikkei has recouped all its losses from last year’s earthquake as Global equity indices, including NY equity futures are all higher. In addition, WTI Oil is trading at $107.21 while gold is at $1,695.20. Today’s US Consumer Confidence report (forecast 71.0 vs. 70.8) could provide additional support to risk seekers.
The short term Canadian dollar technical’s are bullish following the break of US$ support at 0.9930. If strong USD support at 0.9840 crumbles, the CAD$ could extend gains to 0.9420. For today, USD support is at 0.9880, 0.9860 and 0.9840. Resistance is at 0.9930 and 0.9980
The Canadian dollar is getting a bit of a lift from higher oil prices in addition to continued demand for CAD$ against EUR and JPY.
In other news, schools in NY city can no longer use words like dinosaurs, birthdays dancing or Halloween on tests because they could “evoke unpleasant emotions in students” Parents in NY City are also banned from using words like “morons, imbeciles, nincompoops, and brain-dead idiots in correspondence to school officials.
Today’s Range 0.9880-0.9940