December 19, 2012
USD/CAD 0.9852-6=57 Overnight Range: 0.9850-0.9867
The Canadian dollar had another deathly dull session overnight even as the US dollar retreated against the majors allowing EUR/USD to post another post April high on a combination of reduced Euro zone debt fears and an improved outlook for US fiscal cliff negotiations. An improved German IFO business climate survey helped the EUR/USD cause as well. The USD/JPY motored higher on increased expectations of BOJ easing. The US releases housing starts and building permits today. WTI oil is $88.60 and gold is $1,673.22
The short term USD/CAD technicals are modestly bullish while trading above 0.9850 looking to break 0.9870 to extend gains to 0.9890. These intra-day movements are merely “noise” in the context of the well-defined downward sloping US dollar trend. For today, USD support is at 0.9850 and 0.9830. Resistance is at 0.9870 and 0.9890
And in other news, American’s are scrambling to arm themselves, afraid that gun control legislation will be enacted. This has resulted in record sales at gun shops across the country. In the Great White North, nervous Canadians are clamoring for a massive wall to be built along the 49th parallel and the relocation of the Rio Grande to Manitoba/Saskachewan to prevent pistol packing American’s from crossing over.
Today’s Range 0.9830-0.9870
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Vice President, FX Trading