USD/CAD Open 1.0125-30 Overnight Range 1.0120-70
The Canadian dollar squeaked out further gains overnight on the back of a short squeezing EUR/USD climbing higher. A report that the IMF is seeking to bump up their war chest to $1 trillion via contributions from China, India, Brazil, Russia and Japan is giving the EUR/USD legs. It is a bit of a stretch to equate a request for funds by the IMF as a signal for happy days ahead in the Eurozone. Greece is still negotiating bond haircuts and Greeks are protesting austerity measures. In addition, Iran is still sabre rattling, raising middle East tensions. However, so far today, Global equity indices and NY equity futures are all higher. Gold is at $1,654.80 and WTI oil is $101.32. US data releases today include PPI (forecast 0.1%, m/m. The Bank of Canada releases its Monetary Policy report.
The short term CAD$ technical’s are bullish while trading below 1.0180 (100 day moving average 1.0179), which will act as resistance today. However, good USD support is seen between 1.0080 and 1.0110. Below 1.0080 targets 0.9920 while above 1.0180 means more 1.0080-1.0400 consolidation. For today, USD support is at 1.0110 and 1.0080. Resistance is at 1.0160, 1.0180 and 1.0210
Canadian domestic economic data will continue to take a back seat to European and US events leaving the loonie at the mercy of “risk-on-risk-off trading.
And in other news, British Air passengers enroute from Miami to Heathrow were awakened at 3:00 am on Friday with an automated announcement that the plane was about to crash into the sea. Even though the message was a mistake, the Italian pilot was reportedly seen parachuting out an emergency exit
Forecast Range of the Day 1.0080-1.0180