February 19, 2013
USD/CAD 1.0112-17 Overnight Range: 1.0103-1.0128
The Canadian dollar has lost further ground over the long weekend undermined by position squaring/profit taking, quasi-decoupling from WTI pricing, weak domestic economic data and a lack of direction in the majors. Currency War rhetoric has diminished due to the G-20 agreeing that all countries are allowed to use domestic macroeconomic policies to stimulate their economies. So it’s not a war, it’s a race to see who can devalue the fastest. A US internet security firm, Mandiant, has released a report accusing the Chinese military of a slew of hacking attacks. It is either true, or Tom Clancy has adopted a novel way of promoting his latest novel Threat Vector. Meanwhile, gold is trading at $1,613.40 and WTI is at $95.76 Asian equity indexes were mixed with the Hang Seng and the Nikkei down while the ASX 200 gained. European equity indices and NY equity index futures are all higher.
The short term USD/CAD technicals are bullish looking for a run to 1.0250 following the break of resistance at both 1.0040 and 1.0080. For today, USD support is at 1.0110 and 1.0080. Resistance is at 1.0140 and 1.0175
And in other news, Canada Goose scored a marketing bonanza when the 2013 Swim suit cover girl Kate Upton displayed her Canada Goose bumps on the cover of Sports Illustrated magazine. R.L. Stein was not amused.
Today’s Range 1.0110-1.0150
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Vice President, FX Trading