May 11, 2012
|USD/CAD Open 1.0043-48 Overnight Range 1.0018-1.0050
The Canadian dollar is starting the day close to its weakest point since mid April due to the added uncertainty of the Canadian employment report due at 8:30am (Unemployment Rate 7.3% Job gains +10K) Overnight, the Aussie retreated further on weaker than expected Chinese industrial production data and soft equity indices. The EUR/USD got a bit of a boost from a report that 4 Greek political parties vowed to stay in the EU. Global equity indices got spanked on news of the “egregious” JPMorgan $2 billion trading loss. The JPM CEO will truly feel like a “Dimon in the Rough” when the bank becomes the poster child for the “Why We Need a Volcker Rule” proponents. Meanwhile, WTI oil is at $96.06 and Gold is at $1,581.15.
The short term USD/CAD technical’s are bullish above 0.9975 but in danger of topping out and reversing if the USD cannot extend gains through 1.0060. A move back through 0.9975 would negate the upside pressure and risk a return to 0.9780. For today, USD support is at 1.0020, 0.9980 and 0.9940. Resistance is at 1.0060, 1.0110 and 1.0140
The CAD$ could recoup this week’s losses with a better than expected employment data release. However, the gains will be short lived if the JPM trading loss further erodes investor confidence and equity markets continue to tank.
In other news, a group of Wisconsin teens gathered on a dock at Lac La Belle for a pre-prom photo shoot. The wooden structure collapsed, dumping the teens into the water. There were no injuries but that group clearly understands the perils of pier pressure.
Today’s Range 0.9980-1.0060