LoonieViews July 10, 2012

July 10, 2012
USD/CAD Open 1.0172-77 Overnight Range 1.0167-1.0212

The Canadian dollar traded sideways overnights as did the rest of the majors. Risk aversion trading was the theme in Asia supported by a report that China’s trade growth was slowing which helped to lift the JPY while undermining the AUD. Things changed in Europe when the EU Finance Ministers agreed to speed up loans directly to Spanish Banks. This was enough to boost European equity indices, although the EUR remained sluggish. Middle East tensions may be pared back on news that the United Nations has just appointed Iran to the UN Arms Treaty Council. In addition, Syria is running for a seat on the UN Human Rights Council. Fortunately, Costa Concordia Captain Schettino’s bid to chair the UN Maritime Safety Council was declined. It is another light day for data and at these writing, NY equity futures are positive. WTI Oil is $85.51 and gold is $1,593.38

The short term USD/CAD technicals are neutral while trading in the current 1.0160-1.0220 range. A move below 1.0160 should setup a test of 1.0080 while a trip above 1.0220 opens up a return to 1.0440. For today, USD support is at 1.0160 and 1.0120. Resistance is at 1.0200 and 1.0220.

And in other news, Paramount Pictures is rumoured to be filming a remake of the 1940 W.C Fields/Cora Witherspoon classic, The Bank Dick. Bob Diamond and Jamie Dimon both denied stories that the film was really a documentary about them.

Today’s Range 1.0160-1.0230

Michael O’Neill


Categories Markets

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