Loonieviews January 16, 2013

January 16, 2013

USD/CAD 0.9869-74 Overnight Range: 0.9838-0.9877

The Canadian dollar traded below 0.9850 for most of the Asian session but once the US dollar climbed above 0.9850, the Canadian dollar eroded, currently flirting with the solid US resistance zone of 0.9870-90. Yesterday’s EUR selling on Junker’s remarks flipped to EUR buying on the ECB’s Nowotny’s comments, proving that FX markets lack any conviction. Global equity indices including NY equity futures indexes are all lower. Today’s US data releases include: CPI (forecast flat, ex food and energy 0.2%) Industrial Production (forecast (0.3%) Capacity Utilization (78.5%) WTI oil is $93.28 and gold is $1,675.07

The short term USD/CAD technicals are slightly bullish while the US dollar is trading above 0.9840, looking for a break of resistance in the 0.9870-90 area to extend gains to 0.9920. A move back through 0.9840 suggests further consolidation is in store. For today, USD support is at 0.9840 and 0.9820. Resistance is at 0.9880, 0.9890 and 0.9920.

And in other news, Wal-Mart has announced plans to spend$50 billion over ten years in a new “buy American” strategy aimed at getting Americans working again. China is upset at losing jobs to a low income country, especially since thousands of workers will have to return to kindergarten.

Today’s Range 0.9830-85

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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