Forex: USD/CAD soars to confirm overnight high

Having plunged overnight following confirmation of President Obama's re-election, USDCAD found support at 0.9881 after posting a low since October 18th at 0.9873.

The support level fell just above today's S2 support at 0.9879 as spot roared higher to test resistance at the hourly 50MA at 0.9936.The sudden shift in sentiment came following a weak EU economic forecast, weak economic data and commentary from the ECB's Draghi who said that economic growth in the region would remain soft in the medium term. He also discounted the possibility that OMTs could act as a form of financing for sovereigns going forward.

However the headline risk event, the Greek Austerity vote, is due today and could go some way to explaining the nervousness evident across markets. Elsewhere calendar wise US MBA Mortgage applications have come in at -5% and effectively represents the end of the US calendar today. Elsewhere, European stocks are down alongside US futures and the majority of commodities. Critical Spanish and Italian yields are marginally up and stable.