Loonieviews October 19, 2012

October 19, 2012

USD/CAD 0.9868-73 Overnight Range: 0.9846-0.9874

The USD/CAD continued to rally overnight, battering resistance in the 0.9860-80 area, in due to general US strength in the absence of any earth-shattering pronouncements from the EU summits. Asian equity markets eked out gains while European equity indices were mostly lower as are NY equity futures indices. WTI oil is $92.35 and gold is $1,735.40. Existing Home sales (forecast 4.73m) are released in the US. Canada answers with CPI (forecast 0.3% MoM, Core 0.3% MoM)

The short term USD/CAD technical’s are bullish this morning, while trading above 0.9840, arguing for a decisive break through 0.9880 to extend gains to 0.9940. For today, USD support is at 0.9840, 0.9810 and 0.9770. Resistance is seen at 0.9880, 0.9910 and 0.9940.

A lower than expected CPI release today should put to rest any lingering thoughts that the Bank of Canada will be raising interest rates within the next year. In addition, the Finance minister has been busy managing Canadian growth expectations lower.

And in other news, Barry Obama and Mitt (Mittens?) Romney both attended the Alfred E Smith Memorial dinner last evening. The line of the night has to go to Obama who instructed guests “Please take your seats or Clint Eastwood will yell at them”

Today’s Range 0.9840-0.9810


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.

Michael O’Neill

Vice President, FX Trading


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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