Canadian dollar fails to get the blood flowing today as the 'summer doldrums' set in

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Published on Tuesday, 14 August 2012 13:58

Written by Rob Samson

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"On the charts, there is still little sign of the recent trend lower in USD/CAD turning around but the move down has stabilised" - Shaun Osborne at TD Securities.

The Canadian dollar (Currency:CAD) is going to struggle to inspire the passions today, as the below figures will attest to.

The pound to Canadian dollar exchange rate is 0.04 pct in the red at 1.5567.

The euro to Canadian dollar rate is 0.04 pct higher at 1.2242.

The US dollar to Canadian dollar exchange rate is 0.03 pct down at 0.9923.


"You get the impression that the summer doldrums really have reached the FX markets now.  Interest is lacking, volumes are slacking and we start off another day with little new information to drive the major currencies.  Another session of range trading seems in store for the CAD," says Shaun Osborne at TD Securities.

CAD is entering the NA session essentially where it closed yesterday and trading within Friday’s range.

The Canadian dollar has been somewhat resilient, considering the deteriorating in Canadian fundamental releases, with disappointments on GDP, international merchandise trade and employment and the brewing Quebec political risk.

"We expect today’s range to be fairly quiet, pivots highlight this suggesting support at 0.9908 and resistance at 0.9944. We expect the range to be wider than this, looking for it to fall within 0.9900 and 0.9960," says Camilla Sutton at Scotiabank.

"On the charts, there is still little sign of the recent trend lower in USD/CAD turning around but the move down has stabilised.  In the context of weak price signals we noted yesterday, this is a mild positive at least though it is still too early to call off a potential move to 0.98.  Intraday, we still spot resistance around 0.9965," says Osborne.