November 16, 2012
USD/CAD 0.9997-1.0023 Overnight Range: 1.0005-1.0042
The Canadian dollar had an uneventful overnight session although major FX currency pairs were biased towards risk aversion heading into the weekend. Asian equity indices rose (except ASX200) but European equity indices all sank. NY equity indice futures are also in the red on uncertainty surrounding fiscal cliff negotiations. WTI oil is up a wee bit ($85.62) over heightened Middle East tensions. Gold is $1,711.92. There aren’t any data releases of note
The short term USD/CAD technicals are mixed but with a bullish bias. The USD/CAD rate is chopping around in a 0.9940-1.0040 band but needs to crack 1.0050 to extend gains. Only a move below 0.9940 negates the USD upside risk. For today, USD support 0.9995 and 0.9980. Resistance is at 1.0030 and 1.0040.
The USD/CAD upside move is struggling to maintain momentum and with the potential approvals of both the CNOOC/Nexen deal and the Petronas/Progress Energy deal, the CAD$ could enjoy a brief period of popularity, especially if Canadian dollars are still needed to close these transactions. Consider Selling USD/CAD at current levels with a stop above 1.0060.
And in other news, Rita Crundwell 58, the former comptroller of Dixon, Illinois (population 15,733) has pled guilty to stealing $50+ million over 20+ years to fund a lavish lifestyle while raising quarter horses. US Marshalls have recovered about $7.4 million so far. Independent auditors reviewed the books for over 20 years and didn’t find anything untoward because in America, anybody can own multiple properties, fancy cars, expensive jewellery on a $30,000 per year salary. It’s the American Dream.
Today’s Range 0.9980-1.0030
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