LoonieViews June 19, 2012

June 19, 2012
USD/CAD Open 1.0225-30 Overnight Range 1.0219-1.0244

The Canadian dollar had another dull overnight session with the G-20, the two day FOMC meeting and the England-Ukraine soccer game providing ample distraction for traders. A relatively successful Spanish bond auction appeared to offset a much weaker German ZEW report allowing the EUR/USD to rise slightly. Asian equity indices were lower but both European equity indices and NY futures moved higher. WTI oil is $83.13 and gold is $1,629.70 US data releases today include Housing starts and building permits.

The short term USD/CAD technicals are bearish but until the 1.0185-1.0205 support zone is decisively cracked, they will bounce within 1.0190-1.0290 range. For today, USD support is at 1.0210, 1.0185 and 1.0160. Resistance is at 1.0250, 1.0280 and 1.0305

Traders are a tad nervous ahead of this FOMC meeting on heightened concerns that another round of quantitative easing will be announced leaving the US dollar on the defensive even though the Euro zone problems are far from over. The Canadian dollar will be an afterthought in this environment.

And in other news, a BC judge has struck down sections of the criminal code that prohibit assisted suicide. This should make “baby boomers’ very, very nervous when their under employed offspring figure out that they can access their inheritance early by concluding that their parents are tired of living. “Hey Mom, Hey Dad, I will be out in a second. Just let the car warm up a little longer in the garage”

Today’s Range 1.0190-1.0260

Michael O’Neill


Categories Markets

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