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28 Feb 2013
Forex: USD/CAD moves higher ahead of Canada and US data
The USD/CAD was able to retrace losses made just before the European session (down to 1.0217 low) and moved as high as 1.0248 on flows of risk-off mood about Italy's situation. Prime Minister Monti advised the new government to stick to the planned reforms and warned that granting postponement of deficit targets harms credibility, while President Napolitano said it is not possible to speed up process of forming new government.
In regard to today's Canada economic calendar: “The current account report is expected to show a modest narrowing of the deficit, from -$18.9bn in Q3 to -$17.0bn in Q4. This would still be a substantial deficit though at close to 4% of GDP, in line with the worst of what Canada saw in the early 1990s”, wrote TD Securities analysts.
UBS analysts are bullish: “As long as support at 1.0188 holds, watch for the pair to extend the bullish pattern of higher highs and higher lows”, wrote analyst Gareth Berry, pointing to resistance at 1.0366.
In regard to today's Canada economic calendar: “The current account report is expected to show a modest narrowing of the deficit, from -$18.9bn in Q3 to -$17.0bn in Q4. This would still be a substantial deficit though at close to 4% of GDP, in line with the worst of what Canada saw in the early 1990s”, wrote TD Securities analysts.
UBS analysts are bullish: “As long as support at 1.0188 holds, watch for the pair to extend the bullish pattern of higher highs and higher lows”, wrote analyst Gareth Berry, pointing to resistance at 1.0366.