January 14, 2013
USD/CAD 0.9853-58 Overnight Range: 0.9832-0.9856
The Canadian dollar is waffled in a narrow 0.9830-60 band overnight. The USD was probing support around 0.9830 in Asia with the loonie benefiting from a rising AUD/USD. The benefit evaporated during the European session when weaker EC data gave the US dollar a bit of a lift which undermined the loonie. Asian equity indices were higher and most of the European indices were in the green but NY equity index futures are pointing lower to start the week. WTI oil is $$94.00 and gold is $1,671.33
The short term USD/CAD technicals are bullish with the break of 0.9850 looking for a test of 0.9880-90 area.
A move above 0.9890 suggests a run to 0.9910 and then 0.9940.
The Canadian dollar is proving to be an afterthought in global FX trading. The very narrow range for the past month or so may be an indication that investors view the loonie as fairly priced and that the risks are evenly balanced.
And in other news, Katherine Wynne, the MPP for Don Valley is in a tight race for the leadership of the Ontario Liberal Party. The mother of two was married for 13 years before she ended it to switch teams which should give Liberal delegates some pause. If she became leader, how long before she once again decided to “find herself” and Ontario Liberals find themselves switching teams to become part of the NDP?
Today’s Range 0.9830-80
Vice President, FX Trading