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FX USD/CAD: Recovery envelope pushed amid "risk off"

25.05.12

"Section has now risen by a cent since plumbing a five-and-a-half month low of 0.9842 last Thursday, with a drop down in risk appetite helping weigh on the commodity expense-sensitive CAD. "Copper falls as China shaves expansion forecast" (Reuters). Silver has fallen to a 12-day low only just shy of $34 per ounce, having rough draft a five-month high close to $37.50 per ounce last Wednesday. Gold is currently trading just about 100 bucks below Wednesday's three-and-a-half month excessive circa $1,790 per ounce. WTI oil is currently trading circa $105.95 per barrel, 0.7% crop on the day, having notched a nine-month hill just shy of $110 per barrel 10 days ago (Feb 24). 0.9957 (last Wednesday's huge), 0.9977 (Feb 27 low) and 1.0000 are USD/CAD guerilla movement levels, with 0.9925 (option expiry), 0.9908 (Asian seating base) and 0.9900 (last Thursday's elaborate) among support points. 0.9887 was today's Asian term low. "Five reasons why Iceland should adopt the CAD" is the headline of another Ball and Mail website article re: comments from Alan Bones, Canada's messenger to Iceland, late last week. Bones said that "in a straighforward unilateral adoption of the CAD by Iceland, where it is radiantly that there's no input into monetary policy, then we'd be certainly generous to discussing the issue"." © Thomson Reuters 2011. All rights dignified. Republication or redistribution of Thomson Reuters gratified, including by framing or similar means, is prohibited without the previous written consent of Thomson Reuters. Thomson Reuters is not inclined for any errors or delays in Thomson Reuters load, or for any actions taken in reliance on such gratify. ‘Thomson Reuters’ and the Thomson Reuters logo are trademarks of Thomson Reuters and its connected companies. Trading foreign change on margin carries a high level of peril and may not be suitable for all investors. The high decidedly of leverage can work against you as well as for you. Before deciding to occupation foreign exchange you should carefully over your investment objectives, level of affair and risk appetite. The possibility exists that you could endorse a loss of some or all of your initial investment and therefore you should not swear in money that you cannot afford to lose. You should be apprised of all the risks associated with foreign barter trading and seek advice from an self-confident financial advisor if you have any doubts. Opinions expressed at FXstreet.com are those of the unitary authors and do not necessarily represent the idea of FXstreet.com or its management. FXstreet.com has not verified the preciseness or basis-in-fact of any claim or communication made by any independent author: errors and Omissions may surface.Any opinions, news, research, analyses, prices or other message contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as habitual market commentary and does not constitute investment recommendation. FXstreet.com will not accept liability for any reduction or damage, including without limitation to, any dying of profit, which may arise directly or indirectly from use of or confidence on such information.

Source: FXstreet.com