October 12, 2012
USD/CAD 0.9769-74 Overnight Range: 0.9769-0.9787
The USD/CAD is adrift in a sea of indifference while the other FX majors struggle to find direction. The AUD/USD recouped earlier some of its earlier losses as commodity prices ticked higher, while Japanese officials are making noises about intervention to devalue the strong JPY. The EUR/USD ticked higher when some traders concluded that the S&P downgrade of Spain may lead to the Spanish government asking for a bail-out very soon. Asian and European equity indices are flat to down while NY equity indices are ticking higher. It’s alight day on the data front with on US PPI data released (core PPI forecast 1.8% YoY)
The short term USD/CAD technical’s are bearish while trading below 0.9920. However, the currency pair has been unable to break outside of the 0.9740-.9850 trading band. Amove below 0.9740 should achieve 0.9640 while abreak above 0.9850 targets 0.9920. for today, USD support is at 0.9760 and 0.9740. Resistance is pegged at 0.9790 and 0.9820.
The Canadian dollar continues to be an afterthought as global investors attempt to discern the EU’s prospect for debt resolution success, the true state of the US economy and what China’s economic issues mean to the global economy.
And in other news, despite a currency that is stronger than the US dollar, Canadians continue to pay substantially higher prices for goods in Canada then the identical product in the USA.. Case in point-A Tale of Two Tires. Costco USA Michelin Pilot Sport A/S plus $229.99. Costco Canada Michelin Pilot Sport A/S plus $364.99 a mere 59% higher. …but we have free health care
Today’s Range 0.9760-0.98155
The content and opinions expressed within this commentary are solely those of the author(s) and are not necessarily shared by Jitney Trade. The data and comments provided herein are for informational purposes only and must not be construed as an indication or guarantee of any kind of what the future performance of the concerned markets will be. There is a substantial risk of loss in trading commodity futures, options and foreign exchange products and is not suitable for all investors. Contact your account representative for more information on these risks. Information and opinions contained herein come from sources believed to be reliable but are not guaranteed as to accuracy or completeness. Please carefully consider your financial condition prior to making any trading decisions.