January 11, 2013
USD/CAD 0.9834-39 Overnight Range: 0.9826-0.9844
The Canadian dollar added to yesterday’s gains overnight as a consequence of an improving risk environment. Continued selling of JPY on Japanese stimulus plans also created CAD$ demand on purchases of CAD/JPY even as the AUD/USD retreated from its earlier highs due to profit taking. In Europe, the EUR/USD probed the topside while GBP/USD dipped on soft economic data. Canadian and US trade numbers are out at 8:30 but unlikely to have much of an impact on trading. Global equity indices were mixed but mostly in positive territory. NY equity futures indexes are flat. WTI Oil is $93.08 and gold is $1,668.00
The short term USD/CAD technicals are bearish while trading below 0.9880 but need to break significant support at 0.9820 to see an extension of US dollar losses to 0.9740. For today, USD support is at 0.9820 and 0.9770. Resistance is at 0.9860 and 0.9880
And in other news, Chris Spence, the Director of the Toronto District School Board resigned yesterday because of blatant acts of plagiarism. Although he admitted to one count of “accidental plagiarism”, a subsequent National Post investigation revealed that the man had numerous writing ”accidents”. Apparently, even the originality of his resignation letter is questionable as it began with “I had a dream….”
Today’s Range 0.9820-0.9860
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