Can Dollar to US Dollar 16 Oct 2009

The poor old usd to cad, just like Lazarus, tried to rise from the dead on Friday, but was once again buried under the weight of the bearish sentiment for the US dollar, ending the week and the trading session marginally higher but with a deep lower shadow to the upper body. Whilst the effort to rise was a welcome relief for usd to cad bulls, the upper shadow suggests that any move higher will be short lived, a view reinforced by the upper shadow which seemed to find a degree of resistance from the 9 day moving average. This alone would tend to indicate that this rally is only temporary, and simply as a result of the market taking a breather after the steep move lower of the last few weeks, with normal service being resumed in the early part of this week, as we wait to see how long it will be before we see parity for the usd to cad once again.

The only item of fundamental news on the economic calendar for Canada is the Foreign Securities Purchases later today which are expected to come in at 2.97b, up from 0.35b and should this number exceed forecast we can expect the Canadian Dollar to continue rising again.  Meanwhile I have covered the news for the US on my euro vs dollar site.  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.