USD/CAD Open 1.0371-76 Overnight Range 1.0359-90
The Canadian dollar enjoyed a quiet overnight session after being thoroughly spanked the past two days. Ben Bernanke must be pulling out his hair, (if he had any to spare) over the global market reactions to what was merely a statement containing a series of “what if’s”. He has to be wondering “where has all the smart money gone?” FX traders have been complaining about poor liquidity exacerbating moves which contributes to the volatility. Canada releases May CPI (forecast +0.9%, Core 1.2%) and April Retail Sales (forecast +0.2%, ex-autos, 0.1%) which shouldn’t have much effect on trading due to FOMC hangover. The USD/CAD could drift lower toward 1.0320 on profit taking ahead of the weekend. The Nikkei closed higher but the Hang Seng and ASX200 were down. European equity indices rose and NY equity index futures are also slightly higher. Gold is $1,293.50 and WTI is $95.51
The short term USD/CAD technicals are bullish following the break of resistance at 1.0280 on Wednesday and while trading above 1.0330. A break above the 1.0390-1.0410 zone should see a serious test of resistance in the 1.0440-60 area. Above here points to 1.0660. For today, USD support is at 1.0330 and 1.0280. Resistance is at 1.0390, 1.0410 and 1.0440.
And in other news, numerous US security agencies will be doing their part to help Bernanke to achieve a 6.5% unemployment rate, as they plan to hire more Federal agents for the US-Mexican border. Unfortunately the government deficit will balloon because nearly every American will be in uniform, packing a gun and providing security to each other so that only a few dozen elderly will be left to run the economy.
Today’s Range 1.0330-1.0410