Loonieviews January 23, 2013

January 23, 2013

USD/CAD 0.9915-20 Overnight Range: 0.9904-0.9931

The Canadian dollar drifted modestly lower in Asian trading but got a boost during the European session, triggering small stops on the break of 0.9920. The US dollar traded mixed in Asia, losing ground against the JPY due to on-going post BoJ announcement profit taking but achieving slight gains vs. the AUD on a lower CPI print down-under. The USD is slightly lower vs. the EUR and GBP but still directionless. The Bank of Canada interest rate announcement today will leave rates unchanged and the following statement is expected to be very similar to the previous statements. The Nikkei and Hang Seng were lower and the ASX 200 squeaked higher. European equity indexes were mostly flat to down while NY equity futures indexes are flat. WTI is $96.72 and gold is $1,693.51

The short term USD/CAD technicals are bearish within a 0.9880-0.9950 trading band. A move below 0.9880 suggests another test of 0.9830, while above 0.9950 argues for 0.9980. For today, USD support is at 0.9910 and 0.9890. Resistance is at 0.9930 and 0.9950.

And in other news, the TTC is contemplating limiting the number of baby strollers on its buses, streetcars and subway trains after receiving a complaint that they take up too much space. In the interest of equality, the TTC should also ban fat people, smelly people, tall people, old people (because they are too slow), young people (because they are too noisy) TTC employees (because they are mostly morons), politicians (because they don’t pay) TTC Security (because they aren’t at work, anyway) Aboriginal Peoples (because they are idle no more) and Handicapped (because it would be wrong to exclude them)

Today’s Range 0.9880-9930

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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