January 28, 2013
USD/CAD 1.0085-89 Overnight Range: 1.0060-1.0100
The Canadian dollar stayed on the defensive in a quiet start to the week. Australia was closed due to Australian Day festivities and Asian traders waited for the European session to kick-off. This week’s FONC meeting was another excuse to start the week on the fence. The EUR/USD retreated from earlier highs on profit taking and GBP/USD continued to slide but bounced off the lows. This week’s themes are setting out to be economic improvement in Europe, very weak UK economy, slow US growth but improved outlook for global growth as evidenced by rising commodity prices. WTI oil is $96.19 and gold is $1,657.41. US data on tap today includes: Durable Goods Orders (2.0%, ex-Transp 0.8%)) Pending Home Sales (Dec 0.0)
The short term USD/CAD technicals are bullish. The break of previous resistance in the 1.0050-60 zone will act as support while the US dollar consolidates recent gains before its next push to test 1.0140. A break of this level would yield 1.0240. A move below 1.0050 argues for a dip to 1.0010 ahead of 0.9980. For today, USD support is at 1.0060, 1.0050 and 1.0010. Resistance is at 1.0100 (overnight high), 1.0120 and 1.0140
Hourly USD/CAD Chart- Green lines represent support
And in other news, Ontarians awoke on Sunday and swelled with Pride to news that Kathleen Wynn is the new Premier of Ontario.
It is rumoured that one of first acts as Premier will be to replace the stuffy, stale Ontario flag
With this Flag, which better represents all the Ontario political parties that she will need to jump into bed with to
maintain her minority government.
Today’s Range 1.0060-1.0110
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Vice President, FX Trading