June 12, 2012
|USD/CAD Open 1.0275-80 Overnight Range 1.0268-1.0325
The Canadian dollar ended yesterday’s late day skid overnight aided in part by demand for CAD/JPY. The IMF wrote in a report that the JPY was overvalued and that plus anxiety about possible BoJ intervention gave USD/JPY a lift. The initial glee from this weekend’s 125 billion EUR bail-out of Spanish banks has quickly soured on fears that the EU approach is too piecemeal, increasing the risk of contagion. Yesterday’s Chicago Fed president’s comments that he would “support more measures to generate faster growth” helped to lift Global equity indices including NY equity futures. WTI oil is at $82.41 and gold is $1,591.18
The short term USD/CAD technicals are unchanged, modestly bullish while the USD is trading below 1.0320 aiming for 1.0205. Above 1.0320 suggests a retest of 1.0450 while below 1.0205 points to 0.9970. For today, USD support is at 1.0260, 1.0230 and 1.0205. Resistance is at 1.0295, 1.0320 and 1.0360.
Today’s lack of data from the US and Canada and the European soccer games starting at lunch mean there will be more traders and clients in bars than at desks for most of the afternoon, leaving current FX ranges intact.
And in other news, an Alberta woman was fined $8,500 for hoarding 1,100 rabbits in her Edmonton home. It may have been a misguided attempt to meet Hugh Hefner and become a “bunny” or maybe she was just a whacko.
Today’s Range 1.0230- 1.0310