Loonieviews-February 3, 2012

February 3 ,2012

 USD/CAD  Open 1.0000-05  Overnight Range 0.9985-1.0020

 **Canada Job gains +2.K Forecast 22.0K;  Unemployment rate rises to 7.6%***


The Canadian dollar stagnated (with the rest of the majors) in a dull overnight session, awaiting the employment data from the US and Canada.  The Canadian data disappointed yet the CAD$ price action was muted, indicating  that traders are looking at the loonie through rose coloured glasses choosing to ignore negative news.  Elsewhere, USD/JPY traders are keeping an eye out for BoJ intervention as the JPY approaches post WWII highs. The Greek farce continues as EU authorities continue the charade of devaluing outstanding Greek bonds up to 70%, while maintaining that Greece hasn’t defaulted.

The short term CAD$ technical’s are  bullish but needing a move either side of .9960-1.0060, to provide further direction.  for today, USD support is at .9980, .9960 and .9910.  USD resistance is at 1.0040, 1.0060 and 1.0120

The Canadian employment report provides further support to the Bank of Canada view that the Canadian economy is facing headwinds from the fallout of the European debt crisis.

And in other news, a potential “War of the Rodents” was averted yesterday. Ontario’s  “Wiarton Willie” and Pennsylvania’s Puxsutawney  had opposing opinions for their end of winter forecasts.  The issue was resolved when  Rupert the Roadmaster made his prediction.  First he saw a shadow, then he saw a bright, bright light, and then a man with a shovel scraped him off the pavement. This meant  6 more weeks of  spring-like winter.

Forecast Range of the Day  0.9960-1.0

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