March 1, 2013
USD/CAD 1.0318-23 Overnight Range: 1.0290-1.0330
The Canadian dollar stayed under pressure overnight with the break of 1.0280 setting the stage for a further weakness to 1.0450, unlikely to garner any support from today’s Canadian Dec. GDP data (forecast -0.2% MoM). The Cardinals are sequestering in the Vatican to elect a new pope. In American, the politicians are sequestering because they don’t like the term, dysfunctional. Meanwhile, the US dollar climbs against the majors. Today’s US data releases include: Personal Consumption, Markitt Manufacturing, Michigan Consumer Sentiment, Construction Spending and ISM Manufacturing. The Nikkei rose but the Hang Seng and the ASX 200 dropped. European equity indices were all lower and NY equity index futures are down as well. Gold is $1,570.90 and WTI oil is $90.77
The short term USD/CAD technicals are bearish. The USD/CAD rate is in a steep uptrend bound by 1.0250 on the bottom and currently 1.0385 on the top. In addition, the break of resistance at 1.0280 targets 1.0450 and should now act as support. For today, USD support is at 1.0310 and 1.0290. Resistance is at 1.0360 and 1.0380.
And in other news, a zoo in Scotland is reportedly playing Marvin Gaye tunes in an effort to get its Panda’s to mate. So far two zoo keepers and a pair of seniors were successful. The Panda’s may have been distracted watching the frolicking couple outside their enclosure.
Today’s Range 1.0310-1.0360
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Vice President, FX Trading