Loonieviews January 22, 2013

January 22, 2013

USD/CAD 0.9937-42 Overnight Range: 0.9909-0.9941

The Canadian dollar is on the defensive with the US dollar probing resistance at the 0.9940 area. Overnight, the Bank of Japan delivered on the rumours of raising the inflation target to 2% but disappointed traders with news that the open ended asset purchase program wouldn’t start until January 2014. USD/JPY took a beating on buy the rumor, sell the fact trading. The European trading session was rather lively 9except for USD/CAD traders) with numerous rumors roiling markets until a better than expected ZEW (Expectation of economic growth) survey (31.5 vs forecast of 12.0) gave the EUR/USD a boost. The Asian equity indexes (except Nikkei) posted gains) while European equity indices declined and NY equity index futures are also pointing lower.

The short term USD/CAD technicals are bullish, looking for further gains to 0.9980 and then 1.0060 following the break of the downtrend line at 0.9880. For today, USD support is at 0.9910 and 0.9880. Resistance is at 0.9950, 0.9960 and 0.9980

And in other news, a BC Transit cop ‘accidently” left an explosive device on a commercial aircraft following a dog training exercise on the plane. He didn’t realize that the explosive was missing for two days and by then the plane had already flown to Toronto. Apparently, the lesson that authorities were attempting to impart was “You probably shouldn’t do this”

Today’s Range 0.9920-0.9960

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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