November 19, 2012
USD/CAD 0.9992-97 Overnight Range: 0.9980-1.0018
The Canadian dollar got a lift (as did the rest of the majors) from Barry Obama’s claim that “he was confident that a deal would be reached, avoiding the fiscal cliff. Israel’s aggressive response to the Hamas missile attacks has given oil prices a boost (WTI $87.98) which also supported the loonie. The JPY stayed under pressure following last week’s election call as the Japanese PM-to-be front runner, Abe, opined about aggressive measure to weaken the yen. Meanwhile, global equity indices aborted last week’s slide and rose as are NY equity indice futures. US Home Sales are released today (forecast -0.2% MoM)
The short term hourly USD/CAD technicals are bearish looking for a break of 0.9980 to extend US dollar losses to 0.9939 (100 day moving average) However, the US bullish stance on the daily charts from the September 0.9633 low, remains intact with the rising trend line currently at 0.9939. For today, USD support is at 0.9980 and 0.9960. Resistance is at 1.0005 and 1.0020
The FX markets are starting the week with a more positive tone than last week but as is usual at this time of year, trading will be extra light beginning by no one Wednesday as Americans line up for “Black Friday” Sales. In between, one or two families may tuck into a Thanksgiving Feast.
And in other news, the Toronto Argonaunts have advance to play in the 100th anniversary Grey Cup game which is being held in Toronto after winning an Eastern division game (by playing a Western division Team) and then beating Montreal for the Eastern Division title. Toronto Maple Leaf fans are frantically calculating the date of the 100th anniversary of the Stanley Cup to see if the buds will challenge for that cup in their lifetimes.
Today’s Range 0.9960-1.0005
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