The USDCAD has come under pressure off the report as the price moves toward the low from Friday at the 1.0155 level.  A break of the lows will bring back into focus the parity level 1.0000 for the USDCAD.  The last time the USDCAD was at parity was in July 2008.

On the topside the resistance now come in at the 1.0183 level and above that the 2009 low price of 1.0205 remains key topside resistance (1.0214 and 1.0223 were 2010 lows prior to the last move lower last week and should also be resistance levels today). 

Interim support may come at 1.0116 and 1.0074 areas. During July 2008 when the USDCAD was last at these levels, the 1.0116 level was a resistance high while the 1.0074 area was resistance than a support level.  See the hourly chart from July 2008 below for these levels. 

Canada Manufacturing Sales soared 2.4% vs 0.6% expectations. USDCAD is falling on the news

US Import Prices fall -0.3% the YoY comes down as well t0 -11.2% from 11.5% last month.  The next few months should show the YoY  trending back down as sharp gains from a year ago start to come out of the YoY equation.

The 100 hour MA is at 1.3690. The 1.3691 level has been a support/resistance level to eye. Other support comes in at 1.3704.  Topside resistance at 1.3735. 

Earlier today the 200 hour MA held support twice.

Euro Zone finance ministers worked out a bailout program for Greece.  The program  is of emergency loans, should the austerity plan of lowering wages and raising taxes does not do enough to reign in the Greek budget deficit.
Also- a report that showed German investor confidence dropped less than expected also helped ther Euro in overnight trading. 

The FOMC will announce their rate decision at 2:15 PM (NY Time).  Interest rates are expected to be kept at record lows to sustain the economic recovery.

World equity markets rose, as the EU comes up with a plan for Greece, and that the US will keep interest rates steady.
US Futures are also pointing to a higher opening this morning.

Oil:$80.02                                         Gold:$1113.20

HAVE A GREAT DAY & GOOD LUCK

The GBPUSD has moved up sharply over the last few hours after falling earlier on concerns about the debt situation in the UK.  The price is up testing the lows prior to the fall yesterday That level comes in at the 1.5151 level. The price has stalled at the level it seems. Support comes in at the 1.5110 level which was the initial highs on the spike higher today. The 1.5085 is addtional support.  A move above the 1.5151 level would look toward the close from Friday at 1.5183.  Above that the 1.5206 high price for the week.

A sharp fall in the EURGBP has helped contribute to the GBPUSD strength this morning as well.

• CPI (y/y) - Survey: 0.9%   Actual: 0.9%   Prior: 0.9%
• Core CPI (y/y) - Survey: 0.8%   Actual: 0.8%   Prior: 0.9%

• German ZEW Economic Sentiment - Survey: 43.5   Actual: 44.5   Prior: 45.1
• Eurozone ZEW Economic Sentiment - Survey: 40.1   Actual: 37.9    Prior: 40.2

Wolfgang Franz, the ZEW President has made the following comments:

• Export oriented industries will drive economic growth.
• German business activity has moved from intensive care to rehad.
• German economy is still far from a full recovery.
• The market has priced in all Greek problems.
• There might be some expectation of a bailout for Greece, but cannot say for sure.
• Inflation expectations are going down; point to a more moderate growth path.

This can be viewed as good news for the Eurozone, as Portugal, as well as Italy and Spain, are feared to be the next Greece. Eur/Usd has just bounced off of its lows about 15 points to 1.3671.

Early in today’s session the pair was trading above the 100 hour M/A of 1.3681, but had met resistance at 1.3699, the 38.2% Fibo. In recent trading it appears to have broken below and now flirts with the 200 hour at 1.3651. Any negative outlook from the  German ZEW Economic Sentiment which comes out at 6:00 EST may give the pair the momentum to trade below 1.3640 going into early U.S trading.

• Global growth at ‘reasonable pace’ is the most likely result.
• “Appropriate for rates to gradually move to normal.
• Australia growth may now be ‘at or close to trend.’
• March Minutes show the RBA is ready to respond to other outcomes.
• Mining industry to provide ’significant’ growth boost.
• Europe debt concerns unlikely to impact global growth.
• Europe remains ‘weakest area’ in global economy.
• March increase a ‘timely’ step toward normal rates.
• Main risk from Greek debt problems is contagion.
• Recent economic figures ‘quite firm.’
• Established home market is very ‘buoyant.’
• Underlying inflation falling further in near term.
• Discussed sovereign risk issues associated with Greece.
• Policy decision based on ‘most likely’ outcome.’