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Canadian Dollar Outperforms, British Pound Falters on BoE Comments.

Summary: The Canadian dollar bounced back against the greenback after the pair failed to break above the 50-Day SMA at 1.0980 during the previous day, while the...

The Canadian dollar bounced back against the greenback after the pair failed to break above the 50-Day SMA at 1.0980 during the previous day, while the GBP/USD tumbled lower following the weakened outlook held by the Bank of England. The Canadian dollar bounced back against the greenback after the pair failed to break above the 50-Day SMA at 1.0980 during the previous day, and we may see the USD/CAD continue to retrace yesterday's advance throughout the U.S. trade as the outlook for the world's eighth largest economy improves. At the same time, the dollar-loonie failed to cross back above the 20-Day moving average (1.0875) during the overnight session and has moved nearly 60% of its daily ATR despite the spike lower following the slew of economic data at 14:30 GMT, and the pair may continue to trend lower to test for intraday support. However, as the 30-minute RSI approaches oversold territory, we may see the pair bounce back and hold a narrow range throughout the trade but, a break below yesterday's range may lead the pair to test the weekly low at 1.0716.

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Publication:Mena Report
Date:Sep 15, 2009
Words:232
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