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Forex Flash: USD/CAD may drop on Fed Bernanke's testimony – TD Securities

More than headlines coming from Italy, the main pressure for the CAD is soft domestic fundamentals that have considerably disappointed recently. “Yesterday’s acknowledgement by Governor Carney only added to sentiment extending USD/CAD gains to fresh 2013 highs”, wrote analyst Shaun Osborne and Greg Moore, pointing to Bernanke’s testimony today has potentially CAD positive as Fed's Chairman is expected to downplay the notion of the impending end of QE. “However, Friday’s Canadian GDP report should reinstill the negative CAD theme”, they added.

"We are still bullish on USD/CAD in the coming weeks but Bernanke’s potentially CAD-positive comments could provide a brief pullback", they wrote, pointing to 1.0100 as support and a potential extension higher after a clean break above the 1.0270/80 area.

Commodities Brief – Precious metals await Bernanke testimony, Gold finds resistance at 1600

Gold prices made a run at the vaunted 1600 barrier and resistance (1601.65 daily maximum), however the price could not hold above this figure and pulled back shortly after, spending the European session in flux. After ranging as low as 1591, the yellow metal has rebounded at the onset of American trading, as investors are all waiting for the remarks from Fed Chairman Ben Bernanke at 15:00 GMT. Fundamentally, gold looks good, as it is being supported by its 20-day SMA. At the time of writing, the price has settled at USD $1595.64 per oz., up +0.57% Tuesday.
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Forex: EUR/USD hovers at 1.3100 ahead of Fed's Bernanke on QE

Investors are now focused on what is Fed's Bernanke going to say in his semi-annual testimony to the Senate Banking Committee, where answers about QE should be given. The EUR/USD continues to surround the 1.3100 mark ahead of this big event.
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