Loonieviews Aug. 28, 2012

August 28, 2012
USD/CAD Open 0.9889-94 Overnight Range 0.9889-0.9915

The Canadian dollar continues to flirt around the 0.9900 area, devoid of domestic directional drivers and exposed to the vagaries of Eurozone debt comments, month end flows and speculation surrounding the Jackson Hole meeting on Friday. News that Mario Draghi, ECB president, changed his mind and decided not to attend was viewed negatively. Global equity indices were mixed but US equity indice futures are higher. Gold is $1,665.80 and WTI oil is $96.10.

The short term USD/CAD technicals are bearish USD. A move through the 0.9860-80 zone should lead to further US dollar losses to 0.9800. A move back through 0.9940 will mean more 0.9880-0.9980 consolidation. For today, USD support is at 0.9880 and 0.9960. Resistance is at 0.9910 and 0.9930.

The US Consumer confidence report today (forecast 66.0) will be the only piece of economic data for markets to trade off today.

And in other news, the new commissioner of the RCMP, charged with the task of cleaning up corruption and incompetence in the force, was called on the carpet for using 8 on duty RCMP officers as a color guard at his wedding. He only offered to pay ($912 representing the salaries of the officers, he says.) after being caught. Why do so many senior bureaucrats think they are entitled to be feted in the style of a medieval monarch, at the taxpayers’ expense?

Today’s Range 0.9900-0.9940

Michael O’Neill


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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