Loonieviews November 20, 2012

November 20, 2012

USD/CAD 0.9969-74 Overnight Range: 0.9956-0.9978

The Canadian dollar rose and fell in a narrow band as G-7 currencies made a half-hearted attempt at risk seeking, even as Global equity indices pared back yesterday’s gains. The improving risk sentiment was tested with the announcement by Moody’s that they were downgrading France from Aaa to Aa1, in a move widely expected. Fortunately, elevated optimism surrounding the bail-out funds for Greece, offset the effect of the downgrade. WTI oil is at $88.94, in part due to Middle East tensions while gold is $1,733.92

The short term hourly USD/CAD technicals are bearish looking for a break of 0.9939 (100 day moving average) to kick off another US dollar down-leg targeting a reprint of 0.9630 A move below 0.9939 also negates the daily USD uptrend. . For today, USD support is at 0.9940 and 0.9910. Resistance is at 0.9980 and 1.0005

Today will be the last full day of trading in the US for the week as those who can, head out early to be first in line at the turkey buffet. Consequently FX trading should be very quiet.

And in other news, a 24 year old man in Kingston was arrested for walking down the street during the Santa Claus parade and telling the kids that Santa didn’t exist. Santa quickly put him on the naughty list while Kingston police put him in the drunk tank

Today’s Range 0.9910-0.9980

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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