USD to CAD - Daily Chart Of Currency Prices 29th May 2009

USD to CAD - Daily Chart Of Currency Prices 29th May 2009

Not a lot to say other than we continue our journey due south on the dollar to cad pair with the next target at 1.055 where we may find some minor support which could temporarily halt the collapse of the US dollar but should this be breached then we may well see a return to parity in due course.   There is nothing either on the daily or weekly charts to suggest that the current trend is likely to run out of steam any time soon and with all three moving averages pointing lower and weighing heavily on the currency pair I hope you are adding to your short positions and locking in profits as we descend lower.

The only items of fundamental news on the economic calendar for the Canadian Dollar was the Current Account which measures the difference in value between imported and exported goods, services, investment income and current transfers during the previous quarter.  The current account deficit came in at a whopping -9.1bn against a forecast of -10.4bn so better than expected but worse than the last time.  Meanwhile in the US Preliminary GDP came in worse than expected at -5.7% against a forecast of -5.5%, with the US economy contracting slightly less than initially estimated whilst corporate profits increased, suggesting that the worst of the recession could be over.

With Canada’s pre-eminence in the energy complex the recent surge in oil prices can only benefit the Canadian Dollar and may also see the Alberta Sands projects reinvigorated as extraction now becomes a more viable prospect once again.

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.