December 3, 2012
USD/CAD 0.9918-23 Overnight Range: 0.9916-0.9944
The USD/CAD rate is starting December on a modestly bearish footing aided in part by an improved outlook for Chinese growth though its fate is still tethered to the EU zone debt outlook and the USA fiscal cliff. The EUR?USD was bid on news of a Greek bond buy-back plan as well as a suggestion that Germany’s Merkel may support a haircut on Greek debt. The Bank of Canada meets on Tuesday and will leave interest rates unchanged followed by a Financial System Review on Dec. 6. Friday’s US and Canadian employment data may provide some fodder to trade from, but it is unlikely to last long if the fiscal cliff negotiations are still active. The Hang Seng dipped slightly but the rest of the global equity indices are higher as are NY equity index futures. WTI is trading at $89.49 and gold is 41,717.54
The short term hourly USD/CAD technicals are unchanged from Friday. USD bulls see support in the 0.9880-0.9900 level as a decent buying opportunity for a retest of 1.0040. USD bears see the bounce from 0.9900-05 as merely corrective and are happy to sell USD/CAD at 0.9940 with a stop above 0.9960. For today, USD support is at 0.9920 and 0.9900. Resistance is at 0.9940, 0.9960 and 0.9980.
And in other news, the Canada Post union is threatening to file a grievance against the Post Office if the Crown Corporation refuses to pay for a 5 man delegation to attend a "Free Palestine" conference in Brazil. Apparently, the keynote speaker will be discussing “Boodndoggles-Why Canadian Letter Carriers (some of whom even finished High School) are the best equipped to find solutions to the Middle East geo-political issues.
Today’s Range 0.9910-40
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