Forex: USD/CAD crosses over into negative territory at 1.0240/46

FX moves have been relatively mild, suggesting caution rather than concern among investors and the view that contagion from Cyprus can be contained, according to TD Securities analysts. In regard to the CAD, the budget news from Ottawa yesterday did not add any additional information to the CAD picture but did reaffirm Canada’s solid AAA credentials in a world where that is an increasingly rare attribute. “The underly-ing picture of slow domestic growth at present remains, however, and we rather think that the CAD is liable to softens modestly versus the USD in the near-to-medium term as a result”, wrote analysts Shaun Osborne and Greg Moore, a bit more bullish on the hourly/6-hourly charts. “Potential inverse H&S continuation pat-tern, with good support emerging this week on the dip to retracement support at 1.0180/85”, they added, pointing to more upside momentum above 1.0275/80.