US Dollar-Canadian Dollar (USDCAD) has probed fresh session lows, as Nymex crude futures extend gains with the Dec contract rising $1.30 to $69.11. In addition, gold prices are now up $16.40, above $734, also improving the commodity picture. USD-CAD had closed in Late NY around 1.2100, and slumped sharply in Asian trading on risk appetite as Asian stock rallied strongly, some over 5% on the day. This saw USD and JPY sold against a broad number of currencies. USD-CAD has seen a low of 1.1939 so far with strong support at 1.1897-1.1900, the lows from last week. Large stops are tipped below this level, a break of which targets 1.1745/50. Meanwhile, Euro-Dollar (EURUSD) rally has stalled near Friday's highs with the EUR-USD trading to 1.2868 this morning, underpinned by risk appetite in the wake of rising Asian stock markets. However, the rise was capped near the highs seen on Friday on the EUR-USD, though a break above targets gains to 1.3000. Euro-Zone nations continue to deal with the global credit crunch with Germany planning a EUR50 bln stimulus package. Further reports have emerged as well on property fund freezes in Germany, with a total of EUR30 bln frozen last week. Portugal now plans to invest EUR4 bln to support banks, and has also nationalized Banco Portugues de Negocios SA. Buyers remain on dips to 1.2700 on EUR-USD.

Source