Canadian dollar: Commodity currencies under-perform as markets show their disappointment at a lack of appetite for easing at the US Fed

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Published on Thursday, 12 July 2012 13:40

Written by Will Peters

International Money Transfers at our sister site

"We have noted that the daily chart picture has been a bit more constructive for USD/CAD recently" - Shaun Osborne at TD Securities.

The Canadian dollar (Currency:CAD) is lower against the USD today as currency markets take their cue from the equity markets which are in the red.

The pound Canadian dollar exchange rate is unchanged on last night's closing level at 1.5813.

The US dollar to Canadian dollar exchange rate is 0.4 pct higher at 1.0236.


The commodity currencies, such as the Canadian dollar are under-performing alongside stocks and commodities.

"News flow overnight has been limited but there is perhaps more of a sense of disappointment in the market today that the Fed’s easing bias was not more explicit in yesterday’s FOMC minutes," says Shaun Osborne at TD Securities.

From a technical perspective, Osborne says:

"We have noted that the daily chart picture has been a bit more constructive for USD/CAD recently – strong rejection of the 1.01/200-day MA last week – but funds have been trapped essentially between the 200-day MA and 40-day MA. A test of the upper end of that range is unfolding now though we are not sure there is enough momentum in the market to crack 1.0250 (and push on to 1.03) today. Support is 1.0180/90 on the day."