June 11, 2012
|USD/CAD Open 1.0235-40 Overnight Range 1.0201-1.0255
The Canadian dollar popped higher as the US dollar dropped against the majors on the 125 billion Euro bail-out of Spain by the ECB. The action squeezed long US dollar positions, triggered stops and led to a wave of risk seeking trading although more opportunistic rather than strategic positioning since no one believes that the ECB action cures the Euro zone woes. Global equity indices except the ASX200, rose as did NYT equity futures. WTI Oil is $84.94 and gold is $1,590.44. There isn’t any data on tap today from Canada or the US.
The short term USD/CAD technical’s are modestly bullish while the USD is trading below 1.0320 with a break below 1.0205 leading to a move to 0.9960. Above 1.0320 means more 1.0205-1.0440 range trading. For today, USD support is at 1.0210, 1.0180 and 1.0160. Resistance is at 1.0270, 1.0310 and 1.0340.
The steady US dollar rally intact for a month or so has been interrupted by EU actions on the weekend. In addition, Bloomberg reports that a Goldman Sachs report is predicting a 29% rally in the GSCI Enhanced Commodity Index, led by energy and industrial metals, which would also be CAD$ positive
And in other news, an unnamed person successfully bid $3.46 million for lunch with Warren Buffet and eight friends at Smith and Wolensky’s in New York. Mr Buffet’s culinary tastes apparently revolve around hamburgers, fries and Coke so the bidder could have saved a few bucks by picking a Dairy Queen over the steak house.
Today’s Range 1.0190-1.0260