March 28, 2013
|USD/CAD Open 1.0156-61 Overnight Range 1.0154-1.0174
The Canadian dollar rally continued to stall in the 1.0150 area overnight. Residual month end and quarter end demand for US dollars for portfolio rebalancing and repatriation may limit CAD$ gains today. The USD is starting today close to where it ended yesterday against the majors. The FX market remains wary of further negative sentiment stemming from the EU/Cyprus bank deposit raid ahead of the long Easter weekend. Today’s data releases from the US and Canada could spark a bit of a flurry of trading before lunch. Data on tap from the US includes: GDP (Q4 0.4%) Jobless claims (340k), Chicago PMI (56.5) Canadian data includes GDP (Jan.0.1%)
The short term USD/CAD technicals are bearish while trading below 1.0170 but need 1.0150 to crumble to see US losses extend to 1.0110 initially. For today, USD support is at 1.0150, 1.0130 and 1.0110. Resistance is at 1.0170 and 1.0180
1 hour USD/CAD chart
And in other news, when Volker Kraft, a German pensioner heard about the EU Sanctioned raid on bank deposits in Cyprus, he quickly decided not to keep all his eggs in one basket….
Today’s Range 1.0120-80