February 13, 2013
USD/CAD 1.0026-31 Overnight Range: 1.0015-1.0042
The USD/CAD drop below 1.0040 yesterday served to muddle the technical view which was evident in the directionless trading overnight. The AUD got a boost from stronger than expected data and the JPY rebounded modestly as the G-7 currency statement interpretation is rather muddled. Is there a currency war?, battle,? Skirmish? or merely a Chicago Saturday night. The US January Retail sales report was as expected at +0.1% MoM and now traders will focus on the pending G-7 meeting. Gold is $1,648.50 and WTI is $97.80
The short term USD/CAD technicals are neutral following yesterday’s move back through 1.0040 suggesting a period of consolidation between 1.0010 and 1.0080. For today, USD support is at 1.0010 and 0.9990. Resistance is at 1.0060 and 1.0080
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.
And in other news, the Carnival Triumph is being slowly towed to Mobile, Alabama after an engine room fire left it powerless, leaving over 4,000 passengers and crew without running water, toilets or air conditioning. The vessel has quickly turned into a floating outhouse replete with all the aromas.
Today’s Range 1.0010-1.0060
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Vice President, FX Trading