Loonieviews-May 3, 2012

USD/CAD Open 0.9833-38 Overnight Range 0.9833-0.9868

The Canadian dollar eked out some gains overnight despite kiwi getting pummelled on worse than expected unemployment data.( Unemployment rate 6.7% vs forecast 6.3%). AUD/USD was also soft on weak data but both currency pairs recovered somewhat during the European session. In Europe, the USD scratched out additional gains ahead of the ECB rate decision (expected unchanged at 1%). and are nervously awaiting remarks from the ECB President Draghi who many fear will announce additional stimulus measures. Asian equity indices were mixed with both the ASX and Hang Seng down while the Nikkei rose. European equity indices and NY equity futures are all in the “green”. Gold is at $1,645.22 and WTI oil is $104.78. US data releases today include Jobless claims. (forecast 331k). No data from Canada.

The short term CAD$ technical’s are unchanged from yesterday. They are bullish while trading below 0.9890 with decent US dollar support is at 0.9780. For today, USD support is at 0.9810 and 0.9780. Resistance is at 0.9850 and 0.9890.

The Canadian dollar is getting support from the combination of high oil prices, rising equity market prices , bullish CAD$ technical’s and the perception of that an improving US economy will be good for Canadian growth as well.

In other news, someone named Scott Thorson who was famous for being Liberace’s lover is claiming to have been “more than friends” with Michael Jackson. Singer/songwriter, Tom Cochrane denies rumors that the pair were the inspiration for the title of one of his hit songs. (look it up yourself)

Today’s Range 0.9780-0.9860

Michael O’Neill



Categories Markets

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