March 15, 2012
|USD/CAD Open 0.9931-36 Overnight Range 0.9915-0.9945
The Canadian dollar traded sideways overnight as did the rest of the majors as traders remained idle awaiting today’s US economic releases. On tap are: Empire Manufacturing, US PPI forecast 0.5%, ex food-energy. 0.4%) Jobless Claims (357K) and US Philly Fed. In addition, the softer profile of commodity prices on concerns of a China slowdown have tempered enthusiasm for the loonie. WTI oil is at $105.56/bbl and gold is $1,645.60/oz.
The short term CAD$ technical picture is neutral while the currency pair trades within 0.9880-0.9980. A break either side of this range will extend another 50 points. For today, USD support is at 0.9910 and 0.9880. Resistance is at 0.9945 and 0.9980
The Canadian dollar is torn between CAD$ selling demand on a rising US dollar and buying of CAD$ vs JPY and EUR. Today’s US economic data is expected to add further support to the US recovery story which is a CAD$ positive yet concerns over a China slow-down pressure commodity prices which is a CAD$ negative.
In other news, a Goldman Sachs grunt resigned and then published a letter detailing his dissatisfaction with his employer and his $500k/year job in the New York Times. He was outraged that Goldman employees routinely discussed “ripping off clients”. Despite working there for 10 years, the employee never learned that in the context of investment banking, “ripping-off clients” is just another term for “extracting value” or “Customer Service”.
Today’s Range 0.980-0.9970
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