August 27, 2012
|USD/CAD Open 0.9899-04 Overnight Range 0.9899-0.9925
The Canadian dollar firmed slightly in an extra quiet session due to a London holiday. No meaningful data and an absence of European debt headlines contributed to the lack of activity. Merkel remained ambivalent towards Greece, the German IFO expectations were slightly better than some forecasts and Hurricane Ivan’s track up the US Gulf coast led to higher crude prices (WTI $97.19). Ben Bernanke will be speaking at a symposium in Jackson Hole on Friday. Some believe the speech could be similar to the 2010 speech where announced QEll while others say any stimulus announcement won’t be until after the Sept.13-14 FOMC meetings. Asian equity indices closed mixed, European equity indices are mostly higher and NY equity indice futures are in the green.
The short term USD/CAD technicals are bearish. The chart below (hourly) shows a fairly good downtrend pegging USD resistance at 0.9910. Above this level suggests further 0.9885-0.9950 consolidation. A move through support in the 0.9880-85 zone sets up a test of the 0.9840-60 zone and then 0.9800.
The end of summer plus the Bernanke speech Friday, warns that trading this week will be choppy and directionless inside current ranges. However, month end activity could make for a lively Thursday session
And in other news, a Grizzly bear killed a man in the Yukon’s Denali Park as he apparently got to close when snapping a picture. Reportedly, both Sean Penn and Alex Baldwin have sided with the bear.
Today’s Range 0.9880-0.9919