October 12, 2012
USD/CAD 0.9841-46 Overnight Range: 0.9804-0.9853
The USD/CAD is looking a tad wobbly this morning on the heels of a slightly more optimistic outlook for the Euro zone following a better than expected German economic sentiment reading which rallied EUR/USD and led to selling of CAD$ vs the EUR. In addition, persistent rumors that Spain will ask for cash very soon has also contributed to the improved tone. Global Equity indices including NY equity indice futures are all higher. WTI Oil is $92.12 and Gold is $1,744.60. US data releases include: Core CPI ().2%) Industrial Production (forecast 0.2%) NAHB Housing Market Index,
The short term USD/CAD technicals are bullish looking for a test of 0.9940 as resistance at 0.9850 crumbles. For today, USD support is at 0.9810 and 0.9790. Resistance is at 0.9880 and 0.9910.
The Canadian dollar is suffering due to reported EUR/CAD demand however the medium term USD/CAD downtrend remains intact while the currency pair is trading below 0.9940
And in other news, Ontario Premier Dalton McGuinty resigned yesterday, deftly avoiding accountability for the squandering of hundreds of millions of dollars when he cancelled power plant construction projects to save electoral seats. Pinocchio is off to the wood chipper but taxpayers still get fleeced.
Today’s Range 0.9820-0.9890
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Vice President, FX Trading