January 8, 2013
USD/CAD 0.9854-59 Overnight Range: 0.9844-0.9881
The Canadian dollar scraped out some very modest gains overnight after starting the Asian session on the defensive. USD/CAD selling began when Europe walked in, triggering a few stops below 0.9860 in an environment where the US was eking out gains vs the majors (except JPY). There isn’t much of an FX story today so narrow range trading should be the norm. Asian equity indices were slightly lower while European equity indices all squeaked higher. NY equity futures indexes are pointing lower. WTI Oil is $93.56 and gold is $1,651.00
The short term USD/CAD technicals are bullish USD/CAD while trading in the 0.9820-50 support zone but 0.9910 resistances appears formidable. In the medium term, the USD/CAD rate is still in a down trend but momentum has waned. For today, USD support is at 0.9840 and 0.9820. Resistance is at 0.9890 and 0.9910.
And in other news, a provincial court judge finally ended a Port Colborne man’s ordeal after he dismissed all charges against him. Ian Thomson, a firearms instructor, was at home when 4 masked men attacked yelling death threats and hurling Molotov cocktails. He grabbed a gun from a storage locker and fired three shots; two in the ground and one in the air. The attackers vamoosed and when the OPP arrived, they arrested him and charged him with careless use of a fire arm and three other charges. The cops figured that it was easier to charge the home owner, improving their arrest statistics rather than search for the attackers which would have been more work. And everyone knows that the OPP are just so overworked.
Today’s Range 0.9840-90
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Vice President, FX Trading