July 20, 2012
|USD/CAD Open 1.0082-87 Overnight Range 1.0069-1.0090
The Canadian dollar traded quietly overnight, trading with a slightly negative bias as equity investors took profit ahead of the weekend. Middle East tensions are driving WTI oil higher ($91.56) while European finance ministers hold conference calls to finalize $100 billion EUR payment to Spain. Global equity indices are all down including NY equity futures. Today’s Canadian economic data releases include CPI (Forecast June -0.2% MoM, Core -0.1%) and nothing from the US
The short term USD/CAD technicals are bearish US dollars, however USD support between 1.0075 (100 day moving average) and 1.0050 (61.8%Fibo support) has stymied CAD$ upside. For Today, USD support is at 1.0050 and 1.0010. Resistance is at 1.0090 and 1.0140
A lack of US data, increased Middle East tensions and the looming weekend suggest today’s activity will be biased towards profit taking and diminish early as people try to get an early start to the weekend.
And in other news, a slice of toast left over from Prince Charles’s breakfast on his wedding day to Princess Diana in 1981 sold at auction for 230 pounds. Former government minister, Bev Oda is really irked as she caught a ton of flack for spending a mere $15 on a glass of orange juice.
Today’s Range 1.0010-1.0110