December 12, 2012 (12-12-12)
USD/CAD 0.9857-62 Overnight Range: 0.9853-0.9866
The USD/CAD rate flat-lined overnight and the majors traded extra quietly in a dull session that found it hard to find inspiration even as global equity indices continued to rise. The US dollar is on the defensive ahead of today’s FOMC meeting and press conference on the risk of further stimulus activity. .WTI oil is at $86.42 and Gold is $1,714.60
The short term USD/CAD technicals are bearish while trading below 0.9910 looking for further USD weakness below 0.9840 to extend USD losses to 0.9770. For today, USD support is at 0.9850, 0.9810 and 0.9770. Resistance is at 0.9870, 0.9890 and 0.9910
If the FOMC expands the stimulus package the US dollar will come under further pressure lifting the loonie in the process. Unfortunately, most of the action will occur after 2:15, so a long Christmas brunch is in order.
And in other news, today’s Tom Sawyer, mean, mean pride is living in the Limelight, the universal dream because this Working Man didn’t have to wait until 2112 to move closer to the Heart. Congratulations to Canadian rockers, Rush, who have been inducted into the rock and roll hall of fame.
Today’s Range 0.9810-70
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Vice President, FX Trading