June 28, 2012
|USD/CAD Open 1.0264-69 Overnight Range 1.0232-1.0278
The Loonie treaded water overnight, as did the rest of the majors in another boring session ahead of today’s EU summit. Expectations for a result are extremely low with Germany’s Merkel adamant about refusing to effectively co-sign for the debt of other EU nations. Traders entertained themselves with a NY Times tale of more woe at the House of Morgan. Jamie Dimon is looking a tad more foolish due to a story that the $2.0 billion trading loss he reported in May has ballooned to $9.0 billion. Unfortunately, on this go-around Ben Bernanke and the Fed are unlikely to hand him a deeply discounted bank or two to help hide their bungling. In the UK, Barclay’s Bank was fined 453 million pounds for not just rigging LIBOR fixes, but being so stupid as to brag about it in emails. Today’s US data releases include Jobless claims (forecast +385K) and US GDP (forecast 1.9% annual). Global equity indices were mixed to lower and NY equity futures are down, to start the day. WTI oil is $80.05 while gold sits at $1,569.50
The short term USD/CAD technicals are bullish US dollars while trading above 1.0220, which guards strong support at 1.0160. For today, USD support is at 1.0230, 1.0220 and 1.0180. Resistance is at 1.0280, 1.0300 and 1.0320.
The CAD$ is likely to come under renewed selling pressure today due to selling pressures stemming from month, quarter and half year demand for dollars ahead of a Canadian long weekend. Headlines and speculation from the EU summit will add to the volatility.
And in other news, San Francisco homeowners wanted a better view of the bay and the Golden Gate Bridge but another home blocked their view. So they bought the place for $4.2 million and tore it down. Problem solved. Here’s hoping that Turkey, already extremely annoyed with Syria, doesn’t conclude Syria is blocking its view of Jordan
Today’s Range 1.0220-1.0290
Note: There will not be a LoonieViews tomorrow