Loonieviews December 13, 2012

December 14, 2012

USD/CAD 0.9844-49 Overnight Range: 0.9832-0.9850

The USD/CAD drifted in a sea of indifference in a dull overnight session. Japan is getting ready for this weekend’s election and JPY traders are anticipating an Abe victory leading to further monetary easing. In Europe the last EU summit of 2012 wound up without resolving Greece or Spain debt issues which gives traders something to look forward to in 2013. Eurozone CPI came out as expected. US politicians of both stripes are frantically tossing each other off the fiscal cliff making markets nervous as they await some sort of decision. Global equity indices were a mixed bag trading either side of flat while NY futures indexes are pointing to a positive open. WTI oil is $86.87 and gold is $1,697.10. US data already released_ CPI (-0.3% MoM, ex-food/energy 0.1% MoM).

The short term USD/CAD technicals are slightly bullish while above 0.9840 looking for a break above 0.9850 to extend gains to 0.9880; however the medium trend remains bearish US dollars. For today, USD support is at 0.9840, 0.9825 and 0.9810. Resistance is at 0.9850, 0.9860 and 0.9880

And in other news, Canadians may be getting a glimpse of what’s in store for them following the governments blessing of the Chinese state oil company’s purchase of Nexen. China spent billions of dollars purchasing the rights to a copper deposit in Afghanistan. It seems that China plans on destroying the site of an ancient Buddhist monastery to extract the copper. Apparently, China is not satisfied with going a long way to eradicate most of the world’s endangered species by placing them on various menu’s, it is now targeting historical sites, Taliban style.

Today’s Range 0.9825-60

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.

Michael O’Neill

Vice President, FX Trading


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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