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Forex: USD/CAD trading positively at 1.0263/68

The USD/CAD has been confined to a rather narrow trading region (1.0250 daily minimum, 1.0274 daily maximum) ahead of the US session, which looks to be capable of driving the pair in either direction. In recent moments the cross has edged higher into positive territory, operating at 1.0263/68 at the time of writing, up a modest +0.05%.

According to the ICN.com Analyst team, “The upside move extended, as we haven seen the USD/CAD benefit from stability above the 1.0205 level, achieving more gains. We think the bullish move might extend with a target at the 1.0355 region, where a technical formation might be formed.”

The USD/CAD has been held today ahead of the release of some key economic data in the United States, including Durable Goods Orders as well as Home Sales figures in the month of January and the EIA Crude Oil Stocks change (February 22). In addition, this all takes place surrounding the Ben Bernanke testimony as well.

ICN.com analysts identify calculated resistances in the short-term at 1.0290 onto 1.0310, and finally 1.0355. On the negative side, a prolonged break below the 1.0205 level will open up resistances towards 1.0185 and 1.0165.

Forex Flash: EUR/USD to stay above 1.30 despite volatility – Commerzbank

Italy's political stalemate is hurting sentiment, with European stock markets easing and Spanish and Italian bond yields rising, while bunds are back in demand in their role as a safe haven. Also, short term volatilities have risen notably, but longer term volatilities have not really been affected yet. “This discrepancy can be explained by the fact that the FX market was relatively quick to price out the crisis following the ECB’s announcement of unlimited bond purchases. Positions were adjusted as a result: the market went long EUR. Short term these positions are now getting too hot for the participants as the uncertainty about the political future in Italy and thus the reform efforts in the country is rising”, wrote analyst Antje Praefcke, expecting the 1.30 mark to hold for the time being, “but short term the euro’s upside potential is limited with the risk concentrating on the downside – in particular against the background of positive data from the US”.
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European markets up on EMU confidence and Italy bond auction

The German DAX 30 (+0.09%), the French CAC 40 (+0.58%), the Italian FTSE MIB (0.0%) and the Spanish IBEX 35 (+0.66%) are edging higher on Wednesday as confidence in the Eurozone improves and the Italian 10-year bond auction found better than expected yields, although higher from 4.17% to 4.83%. The 5-year sale also found yield moving up from 2.94% to 3.59%.
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