Loonieviews May 9, 2012

May 9, 2012
USD/CAD Open 1.0029-34 Overnight Range 0.9985-1.0035

The Canadian dollar sank further during the Asian session but managed to recoup some losses in the early going in Europe. However, the gains were short lived and the USD/CAD rate reversed course and headed back to 1.0035. The AUD/USD came under pressure early following the Aussie PM suggesting that a budget surplus would give the central bank “maximum room to move” in interest rates. Risk aversion and bearish EUR/USD technicals have turned global equity indices into a sea of red, crushed WTI oil prices ($96.45) and taken the shine off gold ($1,585.94). All because Greece can’t form a government jeopardizing the EU bail-out.

The short term CAD$ technical’s are bearish with the USD/CAD in a steep up trend on the hourly charts, while trading above 0.9980. A move through the 200 day moving average at 1.0050 risks 1.0280. For today, USD support is at 1.0010 and 0.9980. Resistance is at 1.0050, 1.0080 and 1.0110.

The real possibility that Greece opts to exit the Euro and stiff their creditors has increased the focus on Spain’s financial short comings and encouraged global investors to shun risk.This time they might be right.

In other news, a Windsor area woman waddled into a Tim Horton’s, discovered that she was in labor and promptly gave birth to a baby girl. There is no truth to the rumour that the baby was named “Honey Cruller”

Today’s Range 1.0010-1.0110

Michael O’Neill


Categories Markets

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