Forex Investment and Currency Trading

USD/CAD starting off the session a little better bid overall, with the USD generally finding better support at the start of the week as risk aversion emerges once again as the main driver for sentiment; equity futures are trading lower and should provide the USD (and JPY) with support at least initially this week. Data focus falls on the US ISM manufacturing data today and the jobs data later in the week (ADP and then the non-farm payroll report itself on Friday); Canadian data flow is light until the latter part of the week (employment Friday also) and so the CAD will likely continue to swing on the back of flows and sentiment until the fundamentals provide a little more guidance for the markets. Analysts look for USD/CAD to remain better supported in the short run at least in the low/mid 1.23s. Key short term resistance above the market between 1.2445 may not hold the market for long, on the basis of early price action (above here opens up the topside towards the low/mid 1.25s); a clear push below 1.2300/10 is needed to lift the CAD from here intraday. Trends on the crosses are a little mixed so far, with EUR/CAD rallying back from new lows for this move down overnight, GBP/CAD giving back a lot of last week’s gains and CAD/JPY finding modest support so far below the 72 level.