Loonieviews October 31


October 31, 2012

USD/CAD 0.9973-78 Overnight Range: 0.9960-9997

The USD/CAD retreated below par yesterday and stayed below that level in a dull overnight session. Hurricane Sandy, Friday’s US employment report and next week’s Presidential election have conspired to reduce liquidity. In the bi-polar world of FX, markets are a tad less risk averse than they were on Monday and Tuesday, supported by hopes that the EU conference call on Greece yields some results. Global Equity indices and NY equity indice futures are in positive territory with lower Manhattan employees expected to wade into work today. Gold is $1,721.00 and WTI Oil is $86.39. Canadian GDP (forecast 1.7% YoY) should have little impact

The short term USD/CAD technical’s are bearish with the move back through the steep uptrend line at 0.9995 which argues for a test of USD support at 0.9950.A USD move back above 0.9990 negates the short term downtrend. For today, USD support is at 0.9950, 0.9920 and 0.9885. Resistance is at 0.9990 and 1.0020

And in other news, an actual headline for a story in the UK Daily Mail reads “Hurricane Sandy forces coffins of the dead to rise up from the ground” I guess in merry old England, they have coffins for the “live” as well.

Today’s Range 0.0.9950-0.9990

LoonieViews

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.

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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