LoonieViews June 27, 2012

June 27, 2012
USD/CAD Open 1.0247-52 Overnight Range 1.0236-1.0263

Ho-hum-Another dreary overnight session devoid of any direction. FX markets are mostly unchanged ahead of the EU summit that starts tomorrow. Global equity indices are all higher, dubiously being attributed to a report in the Chinese Securities Journal that “China may introduce more proactive economic policies” Or the indices could just be up because they had dropped for four or five days. NY equity futures are flat at this moment. Today’s US data releases include; Durable Goods (Forecast May 0.5%, Ex transportation 0.7%) WTI oil is $79.11 and gold is $1,567.40

The short term USD/CAD technicals are unchanged. USD bulls look to buy USD/CAD in the 1.0180-1.0205 area with a stop below 1.0150 for a test of 1.0440. USD bears look to sell USD/CAD in the 1.0270-90 area with a stop above 1.0320 for a move through 1.0160, targeting 0.9960. For today, USD support is at 1.0240, 1.0220 and 1.0180. Resistance is at 1.0270, 1.0290 and 1.0310.

FX markets may be lulling themselves to sleep ahead of potential fireworks from unexpected EU summit headlines. The bar is set so low for this summit that anything can happen. In addition, a lot of potentially market moving US data gets released Thursday-Friday including; jobless claims, GDP, U of Mich confidence and Chicago Purchasing Mgrs survey. To make matters worse, there may be extra demand for US dollars from month, quarter and half year end flows.

And in other news, 37 year old Patrick Brazeau, is the latest poster boy for the abolishment of the Canadian Senate. He has a job for life (or until he turns 75), that pays $137K/yr plus perks and in keeping with CUPE and other civil servant norms, only shows up for work 75% of the time. Even Greek civil servants find this to be outrageous (or something to strive for)

Today’s Range 1.0220-1.0290

Michael O’Neill


Categories Markets

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