October 29, 2012
USD/CAD 0.9995-0.9999 Overnight Range: 0.9964-0.9999
The USD/CAD rate probed the 200 day moving average (0.9998) but option barrier defenses held and the USD failed to extend gains. It will be a really quiet trading day due to Hurricane Sandy visiting the US east coast, causing evacuations and public transit shut downs in NYC.. Overnight, trading had a pessimistic bias with concerns that Greek politicians cannot get together on austerity measures, potentially running out of money by Nov. 15. Asian equity indices were flat to down. European equity indices and NY equity indice futures are all down. Gold is $1,710.50 and WTI oil is $85.62. There are no data releases from Canada or the US today.
The short term USD/CAD technicals are bullish looking for a break of the 1.0000-1.0010 zone to extend gains to 1.0040 and then 1.0240. For today, USD support is at 0.9960 and 0.9940. Resistance is at 1.0000, 1.0010 and 1.0040.
The absence of NY traders means reduced liquidity and a heightened risk that vulnerable stops/barriers above 1.0005 get triggered.
And in other news, a man in central China has been sentenced to a year in prison for ringing a bell to end a national college entrance exam too early. Next, year a distant relative of Quasimodo, Quasimoogoogai Pan will be the official bell ringer.
Today’s Range 0.9960-1.0040
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.
Vice President, FX Trading