LoonieViews 20Sep12

September 20, 2012
USD/CAD Open 0.9785-90 Overnight Range 0.9745-0.9810

The Canadian dollar gave up more ground overnight. The catalyst for the move seems to be a pervasive peevishness of global investors over the lack of meaningful, sustainable global economic growth, which has snuffed out last week’s embers of optimism after QE3. Softer PMI data from China and the Euro zone drove global equity indices and NY equity indice futures lower. Oil prices are down (WTI $91.18) on rising US stockpiles which contributed to the softer Canadian dollar. US data releases today include; Jobless claims (+375k), Markitt Mfg PMI (51.5), leading indicators, Philly Fed Mfg. Survey.

The USD/CAD technicals are bearish while trading below 0.9910 on a daily chart, an area well defended by strong USD resistance at 0.9840 and 0.9880. These defences may be tested shortly with a break of 0.9810, unless the US dollar drops back through the uptrend channel support at 0.9860

For today, USD support is at 0.9760 and 0.9720 while resistance is at 0.9810 and 0.9840

And in other news, an obviously misguided, do-gooder, Pamela McColl, has decided that history needs to conform to her view of reality and has edited the classic “the Night Before Christmas” She is outraged and offended that Santa Claus is fat and smokes, which send the wrong message to “our children”. It is too early to tell if this book criticism will attract the same outrage as a recent movie resulting in murder and mayhem across the globe.

Today’s Range 0.9720-0.9810

Michael O’Neill


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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