February 27, 2013
USD/CAD 1.0257-62 Overnight Range: 1.0249-1.0272
The Canadian dollar traded sideways overnight and is starting the Toronto session where it started yesterday. Bernanke went to great pains yesterday to alleviate any concerns that QE would end anytime soon. Equity markets liked what they heard with Asian and European equity indices all higher (accept Nikkei) and NY equity futures indexes rising as well. Aside from further Bernanke testimony today, the US releases Durable Goods ( Jan -4.4% MoM) which could undermine the US dollar. Gold is $1,605.50 and WTI is $92.77
The short term USD/CAD technicals are bullish while the US dollar trades above 1.0240 looking for an eventual test of 1.0440. However, upside US dollar momentum has waned around the 1.0280. For today, USD support is at 1.0240 and 1.0210. Resistance is at 1.0280 and 1.0310.
And in other news, a Vancouver area minor hockey coach was given 15 days in jail for tripping an opposing team’s player (peewees) during the post-game handshake. The kid was not injured. The penalty seems a tad harsh when you consider that Todd Bertuzzi of the Vancouver Canuks sucker punched Steve Moore and then proceed to drive his face into the ice five years ago. Moore’s never played another shift while Todd Bertuzzi makes millions for the Detroit Red Wings.
Today’s Range 1.0240-1.0310
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Vice President, FX Trading