USD vs CAD - Daily Candle Chart 6th July 2009

Friday’s candle on the usd to cad chart provides us with little substance for analysis given that the US markets were closed for a national holiday and therefore trading volumes were thin and the markets somewhat muted.  The sideways consolidation of the last two weeks continued and the only minor point of interest is that the low of the day found some support bouncing off the 9 day moving average but once again failing to make any progress higher.  As outlined in last week’s market commentary this price level at the 1.16-1.17 is now proving to be a tough nut to crack for the usd to cad, but any return to strength of the US Dollar should help the pair in due course and indeed ECB President Trichet’s comments over the weekend have provided some impetus in this direction.  However, we may not see this translated into the usd/cad until the US market opens this afternoon.

There is no fundamental news on the economic calendar for Canada this afternoon and the only item later today in the US is the release of the ISM Non Manufacturing PMI Index which is forecast to show a marginal improvement from last time at 45.9 against a previous of 44.  As this Index is generally considered a leading indicator if the actual is better than forecast then this may provide an initial boost for the US Dollar.  The remainder of the week is set against the framework of the G8 meeting which is due to start in Italy on Wednesday and runs for 3 days.  Naturally any statements (scripted or otherwise) will be closely watched for any clues to the future direction for monetary policy and hence the forex market.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.