September 11, 2012
|USD/CAD Open 0.9737-42 Overnight Range 0.9725-0.9758
The Canadian dollar jumped and the US dollar dropped against the majors on a report that the German Court confirmed that they will render their decision on ESM on Thursday, as promised, in a rather sketchy overnight session. The prospect of the FOMC announcing QE3 on Thursday added to the US dollars woes. Elsewhere, the New Zealand debt ratings were reaffirmed by Fitch at AA , lifting the kiwi. The UK trade deficit came out better than forecast giving a boost to GBP/USD. Asian and European equity indices were lower but NY equtiy indice futures are up. WTI Oil is $96.62 and gold is $1,733.90
The USD/CAD technicals are bearish USD and leaking through the bottom of the downtrend channel which is currently between 0.9730-0.9940. The downtrend channel has been intact since June 2012, suggesting that further USD/CAD downside may be tough to sustain today. For today, USD support is at 0.9725. 0.9710 and 0.9670. Resistance is at 0.9760 and 0.9780
The fairly substantial event risk looming on Thursday in the form of the German court decision and the FOMC statement argues for a near term reversal of recent US dollar losses against the majors and the Canadian dollar.
And in other news, Larry Flynt is reportedly offering $1 million dollars for Mitt Romney’s "unreleased tax returns and/or details of his offshore assets, bank accounts and business partnerships.," Pre-order sales of the next Hustler magazine soared among CPA’s and other assorted financial geeks, making this issue true financial porn.
Today’s Range 0.9710-0.9780