Loonieviews May 10, 2012

May 10, 2012
USD/CAD Open 1.0012-17 Overnight Range 0.9997-1.0028

The Canadian dollar circled just below par, an after-thought in overnight trading. The Aussie got a boost from better than expected employment data (+15.5k vs -5k drop) which proved short lived on weaker than expected Chinese exports. Greece still hasn’t formed a government which could delay or even prevent an EU bail-out payment and is keeping EUR/USD under pressure. Spain looks a tad less ugly following efforts to shore up local banks. The EUR/USD technical’s are bearish ahead of today’s US data which includes: Trade deficit for March (-50.0 billion) and Jobless claims (368K) Canada has Trade (-0.5 billion) and Housing price index 0.3% MoM) WTI oil is $96.14 and gold is $1,590.10

The short term CAD$ technical’s are mixed. CAD Bears view the recent move back through 0.9940 as evidence of a short term bottom in place at 0.9780. They are looking for a break of resistance in the 1.0050-60 zone to extend USD/CAD gains to 1.0240. CAD bulls view USD/CAD strength in the 1.0040-50 area as a prime CAD$ buying opportunity (stop above 1.0080) for a return to 0.9800. For today, USD support is at 0.9990 and 0.9940. Resistance is at 1.0040 and 1.0060.

In other news, a Federal Immigration survey has discovered that there are more than 200 doctors driving cabs in Toronto and another 55 who held PHD’s. However, despite the high levels of education, most still got lost trying to get to the airport from downtown.

Today’s Range 0.9950-1.0030

Michael O’Neill


Categories Markets

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