Loonieviews November 30, 2012

November 30, 2012

USD/CAD 0.9933-38 Overnight Range: 0.9919-0.9940

The USD/CAD rate is ending the month flirting with 0.9940, previously decent support which gave way last week. The dominant theme continues to be the fiscal cliff discussions and conflicting headline reports. Elsewhere, soft consumer price data in Japan led to USD buying on hopes of further stimulus. EUR/USD retreated from resistance at 1.3025. Canada releases GDP (forecast 0.0, MoM) which could be a catalyst for profit taking, lifting USD/CAD to 0.9960. US data includes Personal spending, Personal Income and Chicago PMI (50.5). Global equity indices and NY equity futures indexes are all in the green. WTI oil is $87.79 and gold is $1,730.90

The short term hourly USD/CAD technicals are mixed. USD bulls see support in the 0.9880-0.9900 level as a decent buying opportunity for a retest of 1.0040. USD bears see the bounce from 0.9900-05 as merely corrective and are happy to sell USD/CAD at 0.9940 with a stop above 0.9960. For today, USD support is at 0.9900 and 0.9880. Resistance is at 0.9940, 0.9960 and 0.9980.

The USD/CAD could be vulnerable to additional USD buying on soft Canadian GDP data and profit taking/position squaring ahead of the weekend.

And in other news, Quebec’s environment minister quit the provincial cabinet after it was revealed that he had a history of stiffing landlords for rent and his driver’s license was suspended for numerous offences. If he was truly remorseful, he would have resigned from his seat and the $125K salary plus perks that it entails.

Today’s Range 0.9910-60

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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