LoonieViews July 4, 2012

July 4, 2012
USD/CAD Open 1.0127-32 Overnight Range 1.0121-1.0142

The Canadian dollar retreated slightly overnight as the US dollar made modest gains ahead of Thursday’s ECB meeting. FX trading was extra light due to the US Independence Day holiday and will even be quieter during the North American session. WTI oil is at $87.05 and gold is at $1,616.68. Asian equity indices were mixed to lower and European indices were a tad softer.

The short term USD/CAD technicals are bearish US dollars but the first level of support, the 200 day moving average at 1.0118 held. A move below 1.0118 targets 1.0060. For today, USD support is at 1.0118, and 1.0080. Resistance is at 1.0140 and 1.0170

The Canadian dollar gains in the past week can be directly attributed to a shift back to risk-on trades, restoring a more equilibrium to FX markets, as the previous weeks of pessimistic trading may have been overdone.

And in other news, a Florida man, 20 year old Quartavious Davis, a first offender, was sentenced to 162 years and change in prison with no chance for parole, for his role in a string of armed robberies. No one was hurt in the crime spree but his accomplices testified that Mr. Davis carried a gun. What sentence would a white fellow have been given?

Today’s Range 1.0110-40

Michael O’Neill


Categories Markets

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