Loonieviews April 19, 2012

April 19, 2012
USD/CAD Open 0.9887-92 Overnight Range 0.9883-0.9916

The Canadian dollar continues to bump up against good US dollar support in the 0.9880 area, buoyed by a vague hint of the possibility of an interest rate hike, steady and firm WTI oil prices and a slight moderation of negative European debt sentiment. The JPY traded weaker in Asia on speculation of further BoJ easing while in Europe, a reasonably successful Spanish bond auction kept the EUR/USD near the higher end of its recent range. Elections in France (in 4 days) and Greece (May 6) may serve to temper any risk-on sentiment in the Eurozone. The Nikkei was lower but both the Aussie and Hang Seng equity indices rose. The European equity indices were higher (except Spain) and NY equity futures are also in positive territory. Gold is at $1,645.20 and WTI oil is $103.18. US Jobless claims today, expected to be 370K

The short term CAD$ technical’s are mixed while locked in the narrow 0.9880-0.9920 band- a break either side extends the move by 50 pts. Look to buy CAD$ on weakness near 0.9910 or on a move through 0.9870. For today, USD support is at 0.9880, 0.9860 and 0.9830. Resistance is at 0.9920, 0.9940 and 0.9980

In other news, Gay Pride Parade organizers in Toronto are dismayed that once again, Toronto Mayor, Rob Ford has declined their invitation to attend the annual Gay Pride parade. The rest of us, not declared legally blind, are overjoyed that we will be spared images of a pasty-white, 300 pound man in a diaper, strutting down Yonge Street, armed with a super soaker.

Today’s Range 0.0.9860-0.9920

Michael O’Neill


Categories Markets

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