USD vs CAD - Canadian Dollar US Dollar Rates 19th June 2009

As with many other currency pairs the usd to cad continues to move sideways, albeit with a downwards bias, but in a very narrow trading range, with yesterday’s candle indicative of the current mood of the market ending the day as a doji with a small body.  The open high, low and close all finished sandwiched between the 9 and 40 day moving averages, the former of which seems to be providing an element of support whilst the latter is a degree of resistance.   Wednesday’s candle would seem to suggest that the short squeeze has now run out of steam and we should expect a resumption of the downward path in due course.  With no fundamental news on the economic calendar in the US today, the direction for the usd/cad will be largely dictated by the Core Retail Sales and associated Retail Sales figures which are due for release in the next hour.  The forecast for is for -0.1% and 0% respectively.  Yesterday’s comments from Bank of Canada Carney simply reiterated the obvious – ie – that Canadian households were facing  rising “stresses” that could lead to losses for banks but pledged  to keep interest rates unchanged for a year and repeated comments from a speech last week last week that the global economy will not rebound quickly from recession.

As today is both “triple witching” and the last trading day of the week, my trading suggestion is to stand aside from the market and wait for an upturn in momentum and a catalyst to inject some life into the markets.

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.