November 27, 2012
USD/CAD 0.9918-23 Overnight Range: 0.9917-0.9935
The USD/CAD rate is testing support in the 0.9920 in part due to a tenuous link suggesting that the rising Chinese Yuan bodes well for commodity currencies and in part due to the announcement of a debt deal with Greece by the EU and IMF. Since some sort of agreement was widely expected it was no surprise that the EUR/USD rally was short lived. Global equity indices and NY equity index futures liked the news and rose. Gold is at $1,748.18 and WTI oil is $87.98. There is a lot of data from the US today including: Durable goods (Forecast -0.7%, ex transportation -0.5% MoM) Richmond Fed Manufacturing index (-9), Consumer Confidence (forecast 73.0)
The short term hourly USD/CAD technicals are bearish following the move below the 0.9940-60 support zone and needing a decisive break of 0.9920 to extend US dollar losses to 0.9980 and then 0.9740. A move back above 0.9960 argues for more 0.9920-1.0020 consolidation. For today, USD support is at 0.9895 and 0.9880. Resistance is at 0.9930 and 0.9950
The Canadian dollar is likely to grind higher on the tepid return to risk seeking supported by an improved outlook for a soft landing in China and a retreat from the brink in the European debt crisis.
And in other news, the British government has reached across the pond to pluck former North West territory resident and current Bank of Canada governor from his perch and install him has the new Governor of the Bank of England. The Canadian Finance Minister reacted quickly. In a stunning move and in an effort to double the brain power at the Bank of Canada he reached into the Great White North and presented the new Governors of the Bank of Canada
Today’s Range 0.9880-0.9930
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