USD/CAD Open 1.0158-63 Overnight Range 1.0146-1.0175
The Canadian dollar is a tad subdued to start the week with the G-8 meeting and the FOMC meeting providing enough event risk to keep all markets close to home. The improved firmer prices for commodities, particularly WTI oil provided addition support to the loonie. Traders in all markets are hoping that Ben Bernanke provides clarification on plans for tapering or ending Quantitative easing. The US dollar was generally weaker against the majors (except the JPY) and y global equity indices including NY equity index futures were all higher. Gold is at $1,395.80 and WTI oil is $98.50. There is not much in the way of data from Canada or the USA to provide direction today and the 1.0140 level is unlikely to be broken ahead of the FOMC.
The short term USD/CAD technicals are bearish with a US dollar downtrend line (capped at 1.0170) inside the larger US dollar downtrend (capped at 1.0210) with both well supported in the 1.0140-50 area, a level likely to hold ahead of the FOMC. A US dollar move above 1.0170 should see a test of 1.0210 while a move below 1.0140 should see a drop to 1.0080.
And in other news, the leader of the federal Liberal party, Justin Trudeau, may repay $20,000.00 in speakers fees that he received from a financially troubled senior’s organization. Mr. Trudeau has been elected by the people, to speak for the people and to the people and as a sitting Member of Parliament, is paid, by the people. Apparently it is also legal for the greedy, trough munching politician to charge the same tax-payers an additional fee to speak to them! Did he bill the government for his travel expenses? In the private sector, it is highly unlikely that any company would tolerate their employees personally billing customers for company work. But, Trudeau wouldn’t know because he has never had a real job.
Today’s Range 1.0140-1.0170