From: Michael O’Neill
Sent: January-07-13 8:33 AM
Subject: Loonieviews January 7, 2013
January 3, 2013
USD/CAD 0.9869-74 Overnight Range: 0.9860-0.9886
The Canadian dollar is starting the first real trading week of 2013 with a whimper following Friday’s robust trading after the better than expected Canadian employment numbers (+39K). In Asia, USD/JPY retreated from the highs, mostly on profit taking, even though longer term USD/JPY forecast target 90.00. The EUR/USD is waffling between 1.3020 and 1.3090 in part due to nervous speculation that the ECB could cut rates this week. Global equity indices including NY equity futures indexes are all lower mostly due to profit taking following last week’s rally. Gold is trading at $1,656.11 and WTI oil is $92.55
The short term USD/CAD technicals are bullish USD/CAD while trading above 0.9855 but need to crack 0.9910 to extend gains. Longer term, the USD/CAD rate remains in a downtrend while trading below the 0.9960-1.0010 resistance zone. For today, USD support is at 0.9855 and 0.9840. Resistance is at 0.9880 and 0.9910.
Once again the Canadian dollar direction remains at the whim of risk-on, risk-off trading on the back of the European debt issues, US debt and China growth. However, a stronger than expected Canadian Ivey Purchasing Managers survey today (forecast 49.3) should give the loonie a boost.
And in other news, in another clear demonstration that public sector employers need accountability, York University fired an assistant vice president for “cause” (fraud investigation). The President of the University then authorized an $86,000 performance bonus plus he doubled the alleged thief’s severance entitlement. He also gave the guy a letter of recommendation. As Russell Peter’s would say “ somebody gonna get a hurt real bad”
Today’s Range 0.9840-90
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.
Vice President, FX Trading