August 13, 2012
|USD/CAD Open 0.9907-12 Overnight Range 0.9907-27
The Canadian dollar went nowhere overnight in a listless and directionless FX session, to start the week. Friday’s surprisingly weak Canadian employment data resulted in a very brief spurt of CAD$ selling, which was quickly reversed, suggesting that domestic data is irrelevant in the current trading atmosphere. There isn’t any data of note from the USA so narrow range trading will be the theme. UK trading was extra quiet as Londoners sobering up from the Olympic closing ceremony festivities, possibly trying to drown the memory of Jessie J (channelling Roseanne Barr’s Olympic anthem) singing “We Will Rock You “ with the elderly members of Queen. Meanwhile, Asian equity indices were down, European indices mixed to flat and NY equity indice futures flat. WTI Oil is $93.53 and Gold is $1,622.80
The short term USD/CAD technicals are bearish USD. But struggling to crack the 0.9900 zone. A move below 0.9880 will lead to 0.9800. A move above 0.9940 suggests more 0.9900-0.9980 consolidation. For today, USD support is at 0.9900, 0.9880 and 0.9840. Resistance is at 0.9940 and 0.9980.
The uncertainty surrounding the EU, the ECB and the FOMC pertaining to future bail-out funding and stimulus packages, respectively, expected to occur in September have sidelined traders due to a lack of insight and direction.
And in other news, the Twitter universe appears to have condemned Canada’s closing ceremony Flag Bearer selection as “Whining over Winning”. Many twits (?) believe that Canada’s sole Gold Medal winner Rosie MacLennan should have had the honor and not a third place finisher who would have remained anonymous had she not had a nationally televised temper tantrum
Today’s Range 0.9890-.09930