LoonieViews-June 14, 2012

June 14, 2012
USD/CAD Open 1.0275-80 Overnight Range 1.0268-1.0325The Canadian dollar continues to meander aimlessly within a 1.0205-1.0300 range with investors undecided about what to fret about more-Europe and the Sovereign risk or the USA and it’s lack of growth. Overnight, the Kiwi made some gains when the RBNZ left interest rates unchanged. The USD drifted lower vs the majors ahead of today’s data. The US data includes: Jobless claims (375K), Current Account Balance (-131.9b) CPI (1.8% YoY, Ex –food/Energy 2.2% YoY) Canada has New Home prices and the release of the Bank of Canada Financial System Review (YAWN) Asian equity indices closed lower, European equity indices were also down (except Spain) and NY equity futures are pointing higher. WTI oil is $82.81 and gold is $1,619.75

The short term USD/CAD technicals are mixed. US dollar bulls will happily buy dollars near 1.0205 with a stop below 1.0180, looking for a retest of 1.0440. US dollar bears will sell dollars near 1.0300, stop above 1.0320, looking for a move to 0.9970. For today, USD support is at 1.0250, 1.0220 and 1.0205. Resistance is at 1.0300, 1.0320 and 1.0360.

The risk of soft US data releases today and tomorrow ahead of this weekend’s Greek elections should lead to choppy trading with a bias for a higher US dollar vs EUR (and CAD$ by default) as a Euro Zone implosion would be viewed worse than a soft US economy.

And in other news, the federal interim Liberal leader and turn-coat NDP’er, Bob Rae, announced that he would keep his promise and not run for leadership of the party. For this, he received a standing ovation, by all Party’s in the House of Commons. It just goes to show that this action is an extremely rare event. Of course, afterwards, Bev Oda, submitted an expense claim for hand cream

Today’s Range 1.0220- 1.0310

Michael O’NeillLoonieViews
Categories Markets

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