July 18, 2012
|USD/CAD Open 1.0135-40 Overnight Range 1.0119-1.0140
The Canadian dollar mostly retreated from yesterday’s close during an uninspired overnight session. The AUD continued to gain vs the EUR, supported in part to rising commodity prices. Bernanke’s testimony yesterday, revealed a somewhat frustrated FOMC, blaming the lack of economic recovery on Europe. Some market participants were hoping for a hint as to the next round of quantitative easing, but were disappointed. In Europe, cautionary remarks from Germany’s Merkel put pressure on the EUR. Asian equity indices were down, European were mixed and NY equity futures are lower. WTI Oil is $88.77 and gold is $1,576.90, Data releases today in the US include housing starts and more Bernanke testimony. The Bank of Canada releases its Monetary Policy Report.
The short term USD/CAD technicals are bearish US dollars looking for a move through 1.0115 to extend US$ losses to 1.0080 and then 1.0060. US$ support will be seen at 1.0106 ( 200 day moving average) and $1.0070 (100 day moving average) For today, USD support is at 1.0115, 1.0105 and 1.0080. Resistance is at 1.0140 and 1.0170.
The Bank of Canada ‘s Monetary Policy Report will warn of the risks to Canadian growth from Europe while at the same time give themselves kudos for prudently maintaining the status quo with interest rates.
And in other news, 100 people attended a BBQ on Monday in Toronto and 25 of them were shot. Obviously, the gang bangers are not heeding city council’s strict ban on bullets. With the annual Caribana Festival on the horizon, Torontonian may need to visit Kandahar to feel safe.
Today’s Range 1.0080-.10070