February 25, 2013
USD/CAD 1.0227-32 Overnight Range: 1.0206-1.0238
The Canadian dollar stayed on the defensive overnight but managed to stave off attempts to drive it through the 1.0240 resistance area. The USD/JPY rallied on reports that Haruhiko Kuroda would be named BoJ governor as he is known to support a weaker JPY. The EUR/USD firmed slightly on rather dubious optimism surrounding the Italian election results while GBP got spanked on Friday’s Moody’s downgrade which cost the UK their AAA rating. Canada’s BoC governor, Mark Carney gives a speech today which could provide some trading ammunition. Global Equity indices are all higher this morning as are MU equity index futures. WTI oil is $94.10 and gold is $1,591.50
The short term USD/CAD technicals are bullish but running into resistance in the 1.0230-50 zone. Remaining CAD$ bulls should throw in the towel if the 1.0250 level gives way which opens up a move to 1.0440 and 1.0630… For today, USD support is at 1.0220 and 1.0190. Resistance is at 1.0240, 1.0250 and 1.0280
And in other news, Argo won the Oscar for the best picture although to be accurate, it should be the best picture for Fiction, Fantasy and the American Way. The actual working title of the movie was “Argo-A life of Pi” as it is a depiction of events that could have occurred in the sun-baked imagination of a Hollywood screenwriter or ten.
Today’s Range 1.0215-1.0250
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Vice President, FX Trading