The US dollar has made substantial gains today, the euro dollar rate is nearly 1.5% lower on yesterday, euro dollar is at 1.3475. The pound dollar rate is nearly a precent lower, GBP USD is at 1.5435. The US dollar to Canadian dollar is a full 2% higher on the day with USD CAD at 1.0243. From a technical perspective we note that the US Dollar has finally made a clean break over long-term resistance near parity against the Canadian Dollar. A note on the US dollar exchange rate from Investors Intelligence says: "After spending almost two months ranging to consolidate the previous strong recovery from around C$0.94, the US unit has resumed the advance and heads towards next chart resistance near C$1.0250. "A 'Bull' P&F Breakout signal was generated on the move through C$1.000. "We are indirectly long the Greenback v Canadian currency with the long held in the US Dollar Trade Weighted Index, in which the C$ holds a 9.1% stake. DXY moves ahead again having consolidated the base breakout. The stop is raised to 75.5." The US Dollar, Euro and UK Pound all appear in the 'Gainers' table against the South African Rand. The overbought rallies against the Rand are clearly accelerating (trend-ending feature) and Trading Central say they would expect a correction before long. The question is - why would Investors Intelligence go long against the Canadian Dollar but caution against a recovery in the Rand when both are subject to the same pressures?

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