November 8, 2012
USD/CAD 0.9960-65 Overnight Range: 0.9957-0.9980
The Canadian dollar hugged a tight overnight range ahead of BOE and ECB rate decisions which ended up being left unchanged and the BoE ended its bond buying program. The EUR/USD traded defensively and EUR/CAD kept to a tight range. Asian equity indices followed the North American equity indices down but the trend didn’t continue in the Eurozone where all equity indices rose. NY equity indice futures are higher to start the session. Gold is $1,720.10 and WTI $85.53 US Jobless claims fell to 355K, the US Trade deficit narrowed to -41.5 bio. Canadian housing starts fell to 204.1K and the Canadian merchandise trade deficit narrowed to $0 .83b
The short term USD/CAD technical’s are mixed. The USD/CAD is trading in a 0.9880-1.0020 range with 0.9970-80 alternating between resistance and support in intraday trading. For today, USD support is at 0.9940 and 0.9920. Resistance is at 0.9980 and 1.0005
Global markets, including FX welcomed Barak Obama’s second term with a dose of risk aversion, fearing 4 more years of a government stalemate and a high dive off the “fiscal cliff” Adding to the uncertainty is Spain’s reluctance to ask for a bail-out, Portugal’s widening budget deficit and the on-going Greek tragedy. This adds up to skittish markets and narrow FX range trading.
And in other news, the CEO of Ryanair wants to introduce ‘standing room only” sections on flights, claiming seatbelts are useless. So now, instead of having some idiots seat-back in your face, you can spend the flight with the same idiots back- pack rammed in your nose.
Today’s Range 0.0.9920-0.9980
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