January 30, 2013
USD/CAD 1.0024-20 Overnight Range: 1.0008-1.0033
The Canadian dollar managed to hang on to most of yesterday’s gains in a rather quiet USD/CAD session overnight. However, the other majors were a tad livelier with EUR/USD triggering stops on the break of 1.3500, a level not seen in over a year in an apparent nod to expectations that today’s FOMC meeting will be mostly unchanged. Asian equity indexes were higher but European equity indices and NY equity futures indexes are modestly lower. The US data releases today include: ADP employment, GDP (QoQ), GDP Price index and the FOMC. WTI is $97.92 and gold is $1,666.07
The short term USD/CAD technicals have flipped back to bearish USD on the decisive break of support at 1.0060 and again at 1.0040. The USD/CAD rate is likely to retest 0.9910 but there is a lot of USD support to chop through ahead of this level, including 1.0010, 0.9980 and 0.9950. A move back above 1.0050 would negate this view and suggest more 1.0010-1.0100 consolidation. The Green lines represent support and resistance.
And in other news, the RCMP in Halifax have charged a man and a teenager with theft after the duo allegedly robbed a Tim Hortons, making off with cash and donuts. The cash has been recovered and the RCMP in the process of collecting the donuts.
Today’s Range 1.0040-1.0070
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Vice President, FX Trading