The USD weakened versus most pairs yesterday and there was a general increase in risk appetite across asset classes.The brighter outlook may have been attributed to a less confrontational tone being portrayed by Greek officials as relates to its debt negotiations. A cut in the required reserve requirement by the Peoples Bank of China on the back of tighter liquidity conditions follows on the back of a surprise interest rate cut by the Reserve Bank of Australia earlier in the week.Surprisingly,after a very volatile session which saw new lows in the Australian dollar,it managed to finish higher than before the rate cut. UK and European PMI data and retail sales data released today,were generally positive and supported the recent strength in the EUR & GBP. This morning brings ADP employment report in the US and PMI release in the US & Canada.
Strength in crude prices and general USD weakness supported a very strong performance in the Canadian dollar which traded as low as 1.2352 yesterday. With crude weaker by 3% this morning the loonie is under some pressure.
CAD/USD Range 1.2476-1.2390 CURR : 1.2456 RES: 1.2587 1.2761 SUPP 1.2296 1.2179