Forex: USD/CAD settles at 0.9956/58

FXstreet.com (Barcelona) - The USDCAD has seesawed back and forth Monday, as investors hear fragmented news of the impending "fiscal cliff". The cross has ranged nearly 45 pips as of American trading (0.9929 - 0.9973), though presently the pair is operating in negative territory at 0.9956/58. At the time of writing, the price of crude has settled at USD $90.80, down -0.08% on the day.

The technical analyst team at Mataf.net cites the next supportive measures at 0.9935, followed by 0.9921, onto 0.9904. On the ascension, and particularly in the event of an explosion of risk appetite via a deal regarding the "fiscal cliff", the USDCAD will face calculated resistance at 0.9966, then 0.9983, and finally 0.9997.

"For the CAD, we think the risk is two-fold - firstly, the USD benefits from safe-haven flows (while the CAD does the opposite, as it retains one of the stronger positive correlations with US stocks among its high beta peers). Secondly, the CAD may suffer from a slower domestic growth outlook, as weaker US economic prospects from hitting the cliff will quickly spill north." notes the TD Securities Analyst Team.