May 24, 2012
|USD/CAD Open 1.0238-43 Overnight Range 1.0238-1.0280
The Canadian dollar came under renewed selling pressure in Europe, following a quiet Asian session, but managed to recoup all its overnight losses as North America found their desks. Predictions of a further Chinese manufacturing slowdown are undermining commodity currencies and Eurozone dithering is encouraging risk aversion trading. France and Germany are at odds over a proposal for a Eurobond issue. A decline in a German business confidence index exacerbated EUR/USD selling pressure. Asia equity indices were mixed but European equity indices and NY equity future’s are higher. Today’s US data includes; Jobless claims (370k), and Durable goods (0.2% MoM) WTI oil is $90.44 and gold is $1,560.09
The short term USD/CAD technical’s are bullish while trading above 1.0170, looking for a move to 1.0675 on a break. For today, USD support is at 1.0220, 1.0205 and 1.0170 Resistance is at 1.0280 and 1.0360
The pessimistic prognosis for the Eurozone which now includes a Citibank forecast for a Greek exit in 2013 plus the prospect of further weakness in the Chinese manufacturing sector and a lame duck US administration focussed on their re-election prospects and not the economy, may keep risk aversion in the spotlight and drag down the loonie in the process.
In other news, further proof that Brampton, Ontario is a attracting a vast number of multi-ethnic immigrants was found when a four foot alligator was caught strolling through a residential back yard.
Today’s Range 1.0170-1.0260