Greece is the word-again 5Feb15


Greece is the word-again

USDCAD Open 1.2527-32 Overnight Range 1.2511-1.2584

USDCAD drifted off the Asian high of 1.2584 in Europe, on broad-based US dollar selling against the G-10 (except JPY) sparked by a re-think of yesterday’s late day Greece news. On Wednesday afternoon, the ECB announced the removal of a waiver that allowed Greek bonds to be accepted as collateral despite not meeting minimum credit requirements. EURUSD was sold hard in late day trading and in Asia. Europe traders appear to be far less concerned with news and EURUSD is back above the pre-news levels. The bounce in EURUSD served to encourage US dollar selling against the majors. Elsewhere, The Bank of England didn’t surprise anyone and left interest rates unchanged at 0.5%.

Trade data from Canada and the US as well as Jobless claims could provide trading fodder this morning as traders start jockeying for position ahead of Friday’s employment figures from both countries.

The intraday USD CAD technicals are bearish with the overnight move below 1.2550, representing a break of the uptrend from yesterday’s low of 1.2390 and the downtrend from Monday’s peak of 1.2765. A break of the 1.2490-1.2505 area risks a return to 1.2380. A move about 1.2580 points to 1.2665.

Today’s Range 1.2490-1.2560

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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