June 20, 2012
|USD/CAD Open 1.0180-85 Overnight Range 1.0168-1.0197
The Canadian dollar marked time overnight as global FX markets appeared to take a “time-out” awaiting the results of today’s FOMC meeting. The US dollar has retreated in recent days on widespread speculation that the Fed will opt to expand “Operation Twist” (a program that extends maturity of securities in Fed’s portfolio) in another attempt to spur growth. Global equity indices are flat to slightly higher and NY equity futures are flat. WTI Oil is $83.86 and gold is $1,613.85
The short term USD/CAD technical’s are bearish with support at 1.0160 being the last line of defense ahead of a CAD$ rally to 0.9960. For today, USD support is at 1.0160, 1.0110 and 1.0060. Resistance is at 1.0190, 1.0220 and 1.0250.
Central bankers, worldwide, appear to be poised to open the flood gates unleashing a torrent of liquidity in another attempt to jump start economies and reduce unemployment. Even though such a move is expected, there is plenty of room for the US dollar to retreat on renewed risk seeking trading which would also drive the loonie higher.
And in other news, Adidas has cancelled the release of the “Shackle Sneaker” following public outrage that the design invoked images of slavery and prison chain gangs. This was disappointing news for Arizona Sheriff Joe Arpaio, who recently arrested a 6 year old girl for being an illegal. He planned on ordering 10 dozen pairs to ensure that when he trampled some poor person’s rights, that they would be “Stylin”.
Today’s Range 1.0190-1.0260