Usd/cad Rebounded This Morning

Dollar Approaching 2012 Highs USD continues to trade mostly firmer against the major currencies as risk sentiment remains negative. European equities are trading in the red after the ECB paused lending to some Greek banks until they recapitalize and US stock futures are marginally lower at time of writing. The dollar index is nearing the highs of the year around 81.78 which occurred in mid-Jan and we would expect to see this level act as near term resistance as dollar longs may look to take profit. FOMC minutes released yesterday indicated that members expect the recovery to "gradually gain strength" however if it falters, easing may be needed. The UST yield curve is relatively flat today with 10-year yields currently unchanged. Weekly jobless claims were stable at 370k which was the same ...

After a quiet start for today’s session, where currencies were trading within a tight range in anticipation for the king of reports; the main risk-event for today in the form of the employment report; the NFP came to break the silence as it screamed 243,000 new jobs were surprisingly added to the economy, the numbers came way off market consensus of 150k. The unemployment rate slipped to 8.3% from 8.5 in December, while economist expected a steady rate at 8.5%. These positive numbers were mainly supported by job growth in the service sector as it added around 162k jobs. The EUR/USD pair initial reaction was to the upside; however it quickly reversed and fell sharply; at the moment trading around 1.3110, while the positive news may be good for the risk-appetite, at the current global ...

The risk-on trade continues to perform well, contributing to overall dollar weakness versus the majors. The British pound and the Canadian dollar were the strongest performers this morning heading into the New York trading session with Canadian retail sales on tap. The release of stronger than expected British retail sales added momentum to the bullish move behind the pound. March retail sales rose 0.2%. February retail sales were adjusted slightly lower to -0.9% from -0.8%. Economists expected a decrease of -0.5%. The unexpected rise in retail sales numbers sent the GBP/USD soaring to a 17-month high at 1.6572. Since the pair rebounded on Monday from a low at 1.6165, the pound has gained 4 cents on the dollar. Traders should now be eyeing a target of 1.6880 followed by 1.7040. Support ...

The Week Ahead Highlights * Rates, data support USD rebound * Aussie stays strong despite floods and cyclone * The UK economic pendulum swings the other way * Gold and silver may be unable to stay aloft * U.S. growth outpacing Canadian growth * Key data and events to watch next week Rates, data support USD rebound US data this past week pointed to a further gain in momentum for the US recovery, with personal spending, Chicago PMI, both ISM surveys, factory orders and chain store sales all rising and beating estimates. Even the heavily distorted January US jobs report held some good news. Buried in the data, and driven by census adjustments, nearly 600K jobs were created in December, papering over the weaker Jan. job gains. US Treasury yields rose on the back of ...