December 6, 2012
USD/CAD 0.9884-89 Overnight Range: 0.9884-0.9934
The USD/CAD rate traded defensively overnight with the USD gaining modestly on a slight risk aversion shift due to news of a Japanese earthquake and tsunami warning, a downbeat German economic forecast from the Bundesbank and nervousness ahead of the US and Canadian employment numbers.
The nervous nellies need not have worried. US job gains came out at 147K vs. a forecast of 90K and the unemployment rate fell to 7.7& from 7.9% The Canadian numbers were just as impressive, gaining 59.3K vs. consensus of 10.k and the unemployment rate fell to 7.2% from 7.4%
The short term USD/CAD technicals are bearish following the break of support at both 0.9940 and 0.9900 but need to crack strong support in the 0.9870/80 area to see an extension to 0.9700. For today, USD support is at 0.9880 and 0.9860. Resistance is at 0.9910 and 0.9940
The government of Canada is expected to announce if they will allow the CNOOC/Nexen and Petronas /Progress takeovers to proceed. The issue is whether or not in is Canada’s interest to become subservient to foreign governments, especially one know to be hostile to outside investments, secretive, cyber-attacking and communist with a massive, modern army for a few billion dollars and a bag of fortune cookies.
And in other news, a Santa at a Lowes store in Toronto was fired because an overbearing snooty prima donna felt that the Jolly old elf, insulted her precious three year old baby. Apparently, the little prince was clad in a red plaid jacket and Santa asked him if he was “Paul Bunyan”. Perhaps the kid’s mother got upset because if her little bundle of joy was Paul Bunyan, by default she was a large blue ox.
Today’s Range 0.9860-0.9910
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Vice President, FX Trading