January 3, 2013
USD/CAD 0.9847-52 Overnight Range: 0.9846-0.9869
The Canadian dollar was largely ignored in what was a rather lively overnight session, especially if you were trading EUR/JPY or EUR/USD as the retreat from the fiscal cliff resulted in a head-on crash with the debt ceiling. Yesterday’s risk on euphoria morphed into a profit-taking, risk-off, let’s wait and see session with tomorrows US payrolls data (forecast +150K) providing additional incentive to sit on the fence. Today’s Initial Jobless claims report came out at 372K vs expectations of 360k. Asian equity indices rose but European equity indices all fell (except Swiss). NY equity index futures are pointing lower. Gold is $1,678.00 and WTI oil is $92.90
The short term USD/CAD technicals are bearish US dollars while trading below 0.9910, looking for a break of support at 0.9830. A move above 0.9910 points to a retest of 0.9980. For today, USD support is at 0.9940 and 0.9930 with Resistance at 0.9880 and 0.9910.
The US government may have avoided plunging off the Fiscal Cliff, but the Canadian Junior hockey team couldn’t. Team USA laid a beating on Canada’s best and tossed them right out of the tournament with a 5-1 drubbing. Congratulations to the American’s.
And in other news, Brandon Phillips of Palm Bay Florida was arrested and jailed for stealing a $1.29 honey bun from a 7-11 store. He was confronted by the store manager but fled the scene on a bicycle with the stolen pastry down his pants. He was apprehended a short time later by local police using a K-9 unit. The honey bun was not recovered. From the nation that gave you “Honey Boo-Boo, we give you the Palm Bay Police, AKA the Honey Bun Boneheads.
Today’s Range 0.9830-80
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Vice President, FX Trading