December 14, 2012
USD/CAD 0.9844-49 Overnight Range: 0.9832-0.9850
The USD/CAD drifted in a sea of indifference in a dull overnight session. Japan is getting ready for this weekend’s election and JPY traders are anticipating an Abe victory leading to further monetary easing. In Europe the last EU summit of 2012 wound up without resolving Greece or Spain debt issues which gives traders something to look forward to in 2013. Eurozone CPI came out as expected. US politicians of both stripes are frantically tossing each other off the fiscal cliff making markets nervous as they await some sort of decision. Global equity indices were a mixed bag trading either side of flat while NY futures indexes are pointing to a positive open. WTI oil is $86.87 and gold is $1,697.10. US data already released_ CPI (-0.3% MoM, ex-food/energy 0.1% MoM).
The short term USD/CAD technicals are slightly bullish while above 0.9840 looking for a break above 0.9850 to extend gains to 0.9880; however the medium trend remains bearish US dollars. For today, USD support is at 0.9840, 0.9825 and 0.9810. Resistance is at 0.9850, 0.9860 and 0.9880
And in other news, Canadians may be getting a glimpse of what’s in store for them following the governments blessing of the Chinese state oil company’s purchase of Nexen. China spent billions of dollars purchasing the rights to a copper deposit in Afghanistan. It seems that China plans on destroying the site of an ancient Buddhist monastery to extract the copper. Apparently, China is not satisfied with going a long way to eradicate most of the world’s endangered species by placing them on various menu’s, it is now targeting historical sites, Taliban style.
Today’s Range 0.9825-60
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Vice President, FX Trading