Loonieviews March 8, 2012

March 8, 2012

USD/CAD Open 0.9955-60 Overnight Range 0.9945-0.9990

The Canadian dollar climbed in an interesting overnight session as global investors seemed dismissive of unflattering market data , content to view the prospect that a successful private sector participation deal in Greece will be announced tomorrow. The RBZ left rates on hold and the AUD/USD ignored a crummy employment report. (-15.4K). The Bank of England also left rates unchanged as will both the ECB and the Bank of Canada

Global equity indices and NY equity indices futures are all higher as is gold ($1,702.46) and WTI Oil ($106.98/bbl), all because of a weaker US dollar in a risk-on environment.

The short term USD/CAD technical’s are bearish after a failed attempt to probe USD/CAD resistance in the 1.0040-50 zone and a drop through the 200 day moving average at .9995. For today, USD support is at 0.9940, 0.9910 and 0.9880.Resistance is pegged at 0.9970, 0.9990 and 1.0020

The expected good news on a Greek deal today looks like it will trump any announcements from the Bank of Canada that warn of any risks to the Canadian economy, leaving the loonie to slowly grind higher on the back of a softer US dollar.

And in other news, a story in today’s Globe and Mail details the last days of Osama Bin Laden. Being cooped up in a walled compound apparently set his many wives to squabbling, particularly between the oldest wife and the youngest and current favorite. Most of the animosity arose over whose responsibility it was to answer the door at night. "Ding-dong-Seal Team 6 calling"

Today’s Forecasted Range 0.9910-0.9980

Categories Markets

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