Forex: USD/CAD trading at session highs near resistance

The USD/CAD has rocketed higher during American trading Monday, establishing session highs in the 1.0269 region in these moments. Capped by its first resistance at 1.0271, the pair is holding steady, notching an advance of +0.40% above its opening.

“The short-term, technical trend in the USD/CAD remains bullish, however the market has done nothing but move sideways since last Friday’s spurt higher — possibly representing a short-term buying climax as stops were triggered. Still, the broader trend is bullish and we expect solid support on dips to1.02 area intraday.” writes the TD Securities Commodities Research Team.

Mataf.net analysts isolate the resistive means at the 1.0271 handle up to 1.0312 and eventually 1.0368. Should any pullback surface, a downward pullback below 1.0174 handle will instigate means of support at 1.0118 and 1.0077.

Feb 25, 2013

Forex Flash: Reflationary policy to push GDP higher in the Eurozone – Merrill Lynch

Merrill Lynch analysts expect reflationary policy to succeed in pushing GDP growth into positive territory, albeit at low levels, with a return to positive GDP growth QoQ by 3Q13. “But for reflation to translate to sustained growth, closer to trend levels, structural policies (bank restructuring, regulatory reforms and completion of the union) need to be implemented: Reflationary policy in Europe was more modest than in the US but has proved successful in arresting the economic decline”, they wrote, expecting positive growth in 2013 H2 and at 1% in 2014, as well as positive inflation in the Euro area albeit below the ECB’s 2% target.

Forex Flash: EUR/GBP could push higher towards 0.89/9000 – Westpac

According to Robert Rennie, an FX Strategist at Westpac, “It’s hard to see strong arguments for a lasting negative impact on the GBP. However, with the growth/ debt consolidation/ shock absorption issues that Moody’s raised, plus political risks/ concerns the Government’s resolve may start to waiver plus question over what changes, if any, the new BoE Governor may make to the outlook for the Bank’s QE program, risks still look to be on the downside.”