February 12, 2013
USD/CAD 1.0062-67 Overnight Range: 1.0047-1.0085
The Canadian dollar spent the night on the defensive but has managed to pull back from the USD highs earlier in the session. The big news was the communique form the G-7 stating that they “wouldn’t’ target exchange rates”. Traders took it to mean “Sell JPY”. The EUR/USD enjoyed a small bounce higher while GBP took it on the chin for no discernible reason. It is a light day for data but the BoC’s Mark Carney is making a speech. I’m sure the Brits may care but he has already checked out of Canada. Asian and European equity indices are higher but NY equity index futures are down. Gold is at $1,649.50 and WTI is $97.31
The short term USD/CAD technicals are bullish looking for a break of 1.0080 to extend gains to 1.0130 and then 1.0240. For today, USD support is at 1.0040 and 1.0010. Resistance is at 1.0080 and 1.0010
And in other news, Pope Benedict XVl announced his retirement yesterday, sparking off a tsunami of thanks and prayers from around the world. Even the big guy (not Obama) may have gotten into the act, sending down a bolt of lightning to strike St. Peters, to acknowledge the Pontiff’s decision.
Or then again, the picture could be faked J
Today’s Range 1.0040-1.0110.
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Vice President, FX Trading