Loonieviews January 9, 2012

January 9, 2013

USD/CAD 0.9873-78 Overnight Range: 0.9861-0.9880

The Canadian dollar had another uneventful overnight session even as other currencies saw a little action. Worse than expected retail sales data in Australia saw the AUD/USD retreat but the on-going optimistic outlook left over from the Fiscal Cliff debate combined with more positive outlooks for China and the Eurozone helped the currency recover. FX traders are a wee bit nervous with EUR/USD unable to recover gains above 1.3130 warning that a move through 1.2980 could signal a US dollar rally. Global equity indices are mostly in positive territory as are NY equity futures indexes. WTI oil is $93.24 and gold is $1,662.77

The short term USD/CAD technicals are bullish USD/CAD while trading above 0.9820 but still need to crack through strong resistance at 0.9910 to extend gains. For today, USD support is at 0.9860 and 0.9840. Resistance is at 0.9880 and 0.9910.

Canada released housing starts at 8:15 (Actual 198K vs. forecast of 195K) but they had no effect on the USD/CAD rate

And in other news, the “Idle No More” movement threatens to upset the unemployment rate in Canada because if 300,000+ Indians become less idle and start working, Canada’s unemployment rate could plunge to 5%. In a related story, after seeing the tremendous amount of positive media coverage for the “Idle No More” movement, Ontario teachers have adopted a new slogan to show displeasure at having a contract imposed on them. It’s called Idle Some More” to reflect the fact that teachers will not participate in any extracurricular activities.

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.

Michael O’Neill

Vice President, FX Trading


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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