Loonieviews November 6, 2012


November 6, 2012

USD/CAD 0.9927-42 Overnight Range: 0.9928-0.9967

The Canadian dollar shook off the effects of a modest shift into risk aversion and eked out some gains below the 0.9960 support area overnight, mainly due to CAD$ demand against the Euro. In Asia, the AUD/USD got an extra boost when the RBA left rates on hold. Wednesday’s Greek vote on EU appeasing budget cuts has created enough internal rancor to make investors nervous, putting downward pressure on EUR/USD. Today’s Canadian release of the IVEY Purchasing Manager Index could give the loonie a boost if it is above 61.0 The Nikkei and the Hang Seng were lower, the ASX 200 was higher and European equity indices are mixed. NY equity indice futures are up to start the day. Gold is trading at $1,689.50 and WTI Oil is 85.90

The short term USD/CAD technical’s remain mixed and unchanged from yesterday. We need a move below 0.9880 to get an extension to 0.9770 or a break above 1.0020 to test 1.0240. Moves in between the 0.9880-1.0020 band is just noise. For today, USD support is at 0.9920 and 0.9880. Resistance is at 0.9970 and 0.9990

The US election will be old news by tomorrow barring any tie breaking court challenges allowing investors to start worrying about the Fiscal Cliff and its impact on the US economy.

And in other news, tow Montreal men were charged by Regina police in a failed scam to turn plain white paper into money. Apparently the con men were inspired by Rumpelstiltskin tales.

Today’s Range 0.0.9920-.09980

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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