November 21, 2012
USD/CAD 0.9972-77 Overnight Range: 0.9958-0.9990
The Canadian dollar drifted lower during the Asian session but recovered its losses in Europe while trading in a narrow band, Global equity indices all rose (except Australia) and NY equity indice futures are pointing higher as well. The debate surrounding the next EU zone payment to Greece is still raging, but when the dust settles, most believe that Athens will get a cheque next week. Hamas is attempting to garner worldwide sympathy to their plight with actions that even Conan would have thought barbaric helping to keep WTI elevated ($87.77).
The short term hourly USD/CAD technicals are neutral within a 0.9940-0.9990 band. The USD/CAD is still in an uptrend on the daily charts. The sloping red line on the chart below will act as support (0.9915) Below this line means we should see a return to 0.9630. A move above 1.0060 will open up a move to 1.0440.
In my humble opinion, the lack of upside momentum above 1.0030, an improving outlook towards some sort of resolution to the fiscal cliff issue, a likely deal in Greece and evidence of a pickup in the US housing market favor 0.9915 breaking first.
The next Loonieviews will be Monday November 26
And in other news, Toronto city council, forever crying poor, have provided prime city real estate to 93 groups who pay a staggering $2.00 per year for rent. Group such as “buddies in Bad times” theater, Toronto Artscape Inc and the Canadian Stage company have been given these sweet heart deals. Perhaps they need a healthy dose of private sector reality-If the public doesn’t want your product enough for you to generate revenue to cover your costs, then they can join the many other ventures on the scrap heap
Today’s Range 0.9930-90
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