Loonieviews=February 1, 2012

February 1, 2012

USD/CAD Open 0.0.9999-1.0004 Overnight Range 0.9995-1.0045

The Canadian dollar roller took another look at 1.0045 in Asia and had a good rally in European trading to regain parity with the US dollar. G-7 currencies are a tad more volatile in part due to month end and in part due to the ebb and flow of investor sentiment towards Europe. The current USD/JPY level has traders leery of BoJ intervention. Yesterday’s worse than expected Canadian GDP data suggests that the Canadian dollar may underperform and that CAD$ gains through parity will be more of a crawl rather than a sprint. US economic releases today include ISM manufacturing (forecast 54.5) and ADP employment. Gold is at $1,746.23 and WTI oil is $99.33/bbl.

The short term CAD$ technical’s are still bullish looking for further gains to 0.9820 while the USD/CAD rate remains below 1.0080. For today, USD support is at 0.9970 and 0.9950. Resistance is at 1.0020 and 1.0060

The Canadian dollar is likely to remain within the 0.9950-1.0050 range awaiting Friday’s US and Canadian payroll data . (Canada – forecast +22.0K; US +145K)

Forecast Range of the Day 0.9950-1.0030

Categories Markets

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