June 25, 2012
|USD/CAD Open 1.0274-79 Overnight Range 1.0273-1.0300
The Canadian dollar retreated steadily from Friday’s closing price, in part due to falling oil prices (WTI $78.99) which have been under selling pressure by hedge funds unwinding positions due to oversupply and a slowing global economy. Risk aversion remained the main theme ahead of a key EU summit this week (June 28-29). Unfortunately, it appears that markets have taken an overwhelmingly pessimistic view point towards the outcome a situation made worse my remarks from George Soros suggesting that the “Euro could dissolve on a failure of this summit… “. Global equity indices including NY equity futures are all lower.
The short term USD/CAD technical’s are bullish US$ while trading above 1.0160, aiming for a retest of 1.0440 on a break of 1.0310. For today, USD support is at 1.0240, 1.0210 and 1.0180. USD Resistance is at 1.0310, 1.0340 and 1.0380
The Canadian dollar is vulnerable to further selling pressure due the combination of safe-haven demand for US dollars and slowing economic growth from China exacerbating falling oil prices.
And in other news, two teens in Vancouver, Washington decided to harass a jogger for “shits and giggles” with one impeding her forward progress with his bike while the other groped her. Unfortunately for them, the young lady had studied Kung-fu for 18 years at a studio owned by her family. When she went all Bruce Lee on their asses, they were soon begging for the police to come and arrest them. Charles Bronson would have just shot them.
Today’s Range 1.0240-1.0320