Loonieviews January 2, 2013

January 3, 2013-Happy New Year!

USD/CAD 0.9845-50 Overnight Range: 0.9842-0.9944

The Canadian dollar rallied nearly 1.2% vs the US dollar since Friday, buoyed by the news that the US brain-trust announced a deal on the fiscal cliff negotiations. In reality, they are selling a pig in a poke as the legislators have merely cobbled together a series of delaying motions which will unravel by March and calling it a “result”. Whatever the case may be, the light flashed green and investors piled into risk. WTI oil is $93.35 on an improved outlook for growth and gold rallied to $1,690.74. Global equity indices and NY equity index futures are all higher.

The short term USD/CAD technicals are bearish USD following the break back through support at 0.9910, looking for a further break of support around 0.9820-30 to extend US dollar losses to 09740. For today, USD support is at 0.9840 and 0.9820. Resistance is at 0.9880 and 0.9910. The following chart shows the price activity from Friday until now (10 minute chart)

It would appear that desks are still not fully staffed as those that can, take an extended Christmas/New Year’s break meaning liquidity is still at a premium.

And in other news, a man in Norwich, England claimed he was assaulted by ‘Oompa Loompa`s, leaving him with two black eyes and a sore nose. Willy Wonka denied any involvement

Today’s Range 0.9820-0.9880

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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