USDCAD Open 1.0298-03 Overnight Range 1.0280-1.0354
Original post on Saxo Bank’s Trading Floor
The US dollar tanked vs the majors and USDCAD at the Asian open on news that Larry Summers had declined to be nominated for Bernanke’s job. The market is all excited because the move suggests that Janet Yellen is the odds on favorite to be named next Fed Chairman leaving the QE program in place for a longer duration.
If ever a move deserves to be faded, this dollar selling move is it. Larry summers was not part of the FOMC and has nothing to do with the current FOMC’s plans for tapering, which will go ahead as discussed. The Summer’s story is merely a distraction ahead of the real news which comes out Wednesday.
Meanwhile, ,global equity indices and NY equity index futures are all higher. Gold is at $1,315.16 and WTI oil is $106.95
The short term USDCAD technical picture is bearish while trading below 1.0365 but the currency pair reached its first objective at 1.0280 overnight and bounced. The US dollar needs to break support in the 1.0250-60 area to begin a new leg lower. For today, USD support is at 1.0280, and 1.0260. Resistance is at 1.0330 and 1.0365.
Today’s Range 1.0280-1.0330