Forex: USD/CAD drops below 0.99 on 'cliff' hopes

FXstreet.com (San Francisco) - The USDCAD is another casualty of a recent greenback selloff ahead of the upcoming House vote on the Senate's "fiscal cliff" bill this evening. Spot has fallen to a 10-day low of 0.9854 as Asia turns optimistic, now quoted down 0.7% at 0.9863. Further downward movements may encounter a layer of bids at 0.9845 (50%, 0.9631/1.0055), while 0.9905 is likely to provide short term resistance.

Regarding the political implications: "Approval of the bill would be a victory for President Barack Obama, who campaigned for re-election last November on a promise to raise taxes on the wealthiest but faced stiff opposition from congressional Republicans," Reuters reports.