May 15, 2012
|USD/CAD Open 1.0008-13 Overnight Range 0.9998-1.0037
The Canadian dollar squeaked out some gains overnight as better than expected German GDP and a rebound in AUD/USD led to a wee bit of profit taking selling of US. However, this may just be “the pause that refreshes” as Greece may decide to renege on a payment due today, erasing all the debt progress made in the past six months. Asian equity markets ended mixed with Hang Seng and the ASX200 up and the Nikkei down. European indices were all higher on the German GDP data. NY futures are pointing up in part due to investors viewing Jamie Dimon throwing the JPM CIO under the bus as evidence of strong management rather than an action not unlike a man donning women’s clothing to secure a seat on a Titanic lifeboat. Today’s US data includes CPI. (forecast 0.0%, MoM). WTI oil is at $94.81 and gold is $1,558.07
The short term USD/CAD technical’s are bullish while trading above 0.0080. A move below 0.9980 opens up a test of 0.9940 and then 0.9880. Above 1.0060 points to 1.0110 and 1.0140.
European debt developments will be the key focus today with traders awaiting news of a possible Greece default. This news wouldn’t be totally unexpected which could make for some wild currency market swings.
In other news, the Toronto District School board is facing a short fall of $58 million and threatening to close school cafeterias. The left-wing nut bars in the guise of school trustees decreed that students must eat healthy and banned the sale of basically any food that a kid would eat. Profits on the sale of burgers, fries and pizza’s at area restaurants soared while losses mounted at cafeteria’s offering such delicious entrees as Tofui-on –a bun, Soy-Milk shakes and wilted lettuce and bean curd salads.
Today’s Range 0.9980-1.0060