LoonieViews June 18, 2012


LoonieViews
June 18, 2012
USD/CAD Open 1.0240-45 Overnight Range 1.0197-1.0260

The Canadian dollar edged traded sideways, as did the rest of the majors in a rather unresponsive reaction to the “pro-bailout faction” gaining a slim majority in Greece. Modest optimism that Greece would remain in the Euro was quickly forgotten on surging Spanish bond yields. Meanwhile, the Burrito Summit has been convened in Mexico as the G-20 leaders meet again in an attempt to revive the global economy. Global equity indices were mostly higher but NY futures are flat. WTI oil is at $83.99 and gold is $1,621.88. A lack of data and two soccer games this afternoon suggest a light trading day.

The short term USD/CAD technicals are unchanged from Friday with the US dollar maintaining a bearish bias although there is strong support in the 1.0190-1.0205 area. A move above 1.0270 sets up further 1.02-1.03 range trading and if 1.030 gives way, the US dollar bearish bias goes away, as well. For today, USD support is at 1.0220 and 1.0190. Resistance is at 1.0260 and 1.0305.

The imminent demise of the Euro faded with the Greek election outcome however recurring complications from Spain and Italy will ensure the crisis drags on.

And in other news, a Montreal woman was “shocked” to find a worm in her box of Kraft dinner. She was even more upset when Kraft only offered her a buck, as compensation. The worm, on the other hand, was just thankful that he wasn’t in a bait box.

Today’s Range 1.0190-1.0260

Michael O’Neill

LoonieViews

Categories Markets

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