Loonieviews December 27, 2012

December 27, 2012

USD/CAD 0.9918-23 Range: Dec 21 to Dec.27 0.9876-0.9952

The Canadian dollar may have been on Santa’s naughty list on the run-up to Christmas and then stayed in a 0.9910-57 band during the Christmas break. The pre-holiday theme of budget discord provided mixed results. Global equity indices squeaked out some gains on anticipation that neither the Republicans nor Democrats are stupid enough to bring on another recession. NY equity futures indexes are in the green as well. The Canadian dollar softness is likely attributable to year end demand for dollars for repatriation. US Jobless claims were better than forecast at 350K (forecast 360k) but markets are too thin to care. Gold is $1,656.34 and WTI Oil is $91.23

The short term USD/CAD technicals are mixed within a 0.9910-60 trading band. A move above 0.9960 argues for further US dollar gains to 1.0010 while a dip through 0.9910 points to 0.9860. For today, USD support is at 0.9910 and 0.9890. Resistance is at 0.9940 and 0.9960

Hourly Chart from Dec.17

Daily chart

And in other news, a Cornwall family, Stephen and Stephanie Duroscher, expected to receive a home from Habitat for Humanity, but the donation may be rescinded because the couple were charged with running aq grow-op at their previous residence. Habitat for Humanity officials are referring the family to their sister organization, Houses for Hop-heads

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.

Michael O’Neill

Vice President, FX Trading


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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