January 25, 2013
USD/CAD 1.0069-74 Overnight Range: 1.0021-1.0072
The Canadian dollar drifted lower during the Asian session and then tanked during the European day, crushed in part, by relentless demand for EUR/CAD. The EUR/USD and EUR/JPY surged on the back of a stronger than expected German IFO survey and news that European banks have applied to repay EUR 137.2 billion of long term emergency funding loans. That put the haggis in Robbie Burns Day. Asian equity indices were flat to higher, European equity indices are all higher and NY equity index futures are in the green as well. WTI oil is $96.32 and gold is $1,661.65.
The short term USD/CAD technicals are bullish. The US dollar has even thought of retracing as it plows through resistance at 1.0020 and 1.0040. It is currently testing the defences of the 1.0070-80 zone. If this level goes than the USD/CAD is likely to rise to 1.0240
Daily USD/CAD Chart
Daily EUR/CAD chart
The break of resistance at 1.3440 suggests further EUR/CAD uptside to 1.3770
And in other news, an uptight American parenting group, the Parents Television Council (a god-fearing but likely heavily armed bunch of do-gooders) is in a lather over a Kate Upton and Mercedes-Benz commercial that features the bikini clad model washing a car in front of a boy’s football team. Apparently they don’t like the message that the commercial implies-“even you can get a SPORTS ILLUSTRATED cover girl to wash your car, if you buy a Benz.
Today’s Range 1.0060-1.0140
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Vice President, FX Trading