June 22, 2012
|USD/CAD Open 1.0274-79 Overnight Range 1.0273-1.0300
The Canadian dollar was unable to recover from yesterdays weaker than expected domestic and US economic data releases overnight a trend exacerbated by WTI oil trading below $80.00/bbl (currently $78.63). A soft German IFO business sentiment survey added to the existing paranoia of a global economic slowdown, a Spanish or Greek collapse and a lack of growth in the USA which led back to safe haven demand for US dollars and JPY. Asian equity indices closed down, European indices were flat to lower and NY futures are slightly higher to start the day. Canadian CPI data will be released today (Forecast 0.1% MoM; Core 0.3% MoM)
The short term USD/CAD technicals have turned bullish with the break of the steep downtrend line at 1.0260 which suggests a test of 1.0240 is in the cards. For today, USD support is at 1.0260 and 1.0240. Resistance is at 1.0300, 1.0320 and 1.0360.
The loonie has had its wings clipped by seemingly hysterical rantings by the BoC governor and the Finance Minister, warning of a possible Canadian housing crisis, dampening demand for the CAD$ even as oil prices slide. Perhaps they were feeling a little left out with all the attention being paid to the financial leaders in Europe and the US.
And in other news, the Toronto Star is reporting that the financially strapped Toronto District School board is being fleeced by the Maintenance and Construction Skilled Trades Council. In one blatant rip-off, the TDSB was billed $3,000 to install an electrical outlet. The bill included 76 hours of labor to account for workers who “had no assignment”, were on vacation” or merely absent” TDSB officials were not available for comment, but are likely to submit an invoice anyway.
Today’s Range 1.0240-1.0320