July 9, 2012
|USD/CAD Open 1.0197-02 Overnight Range 1.0180-1.0216
The Canadian dollar stayed soft overnight, pressured by the overall strength of the US dollar vs. the majors following Friday’s weak employment data in Canada and the USA, increasing fears of a deeper slowdown in China and general malaise about Europe. Low expectations for the EU Finance Ministers meetings today is also undermining FX confidence. Global equity indices were all in the red as are NY equity futures. WTI Oil is $85.05 and gold is $1,585.61. There are no data releases of note today.
The short term USD/CAD technicals flipped to bullish US dollars on Friday with the move back above 1.0170. Further US dollar strength above 1.0210 will put 1.0340 back into play. A move below 1.0160 will get 1.0110. For today, USD support is at 1.0180, 1.0160 and 1.0110. Resistance is at 1.0210, 1.0230 and 1.0280
The Canadian dollar is suffering from both weak domestic data, soft oil prices and risk aversion, safe haven demand for US dollars exacerbated by summer thinned, directionless markets.
And in other news, the US National Oceanic and Atmospheric Administration have officially proclaimed that “Mermaids are not real”. Not to be out done, NASA announced that “The moon is NOT made of green Cheese”.
Today’s Range 1.0160-1.0230