Loonieviews February 4, 2013


February 4, 2013

USD/CAD 0.9959-64 Overnight Range: 0.9950-0.9975

The loonie dipsy-doodled in an uneventful start to the week gaining altitude in part due to the load lightening loss of pennies from its make-up ( “a nickel for your thoughts”) The USD/JPY motored higher despite the Japanese finance Ministers assertions that a “Weak yen is a result, not a goal of the antii-deflation policies. Japan is not manipulating its currency. (nudge, nudge, wink, wink). An evolving political corruption scandal in Spain has tarnished the Prime Minister leading to fears that Spain’s austerity program could be in jeopardy. A bit of a leap for sure. US data today includes Factory Orders (forecast 2.2%). The Nikkei was the only global equity index to show a gain overnight and US equity futures indexes are also down. WTI is $96.79 and gold is $1,665.30

The short term USD/CAD are bearish looking for further US dollar weakness through the 0.9950 support area to lead to a test of 0.9910. Above 1.0010 argues for a return to 1.0040. For today, USD support is at 0.9950 and 0.9910. Resistance is at 0.0080 and 1.0010.

And in other news, the Baltimore Ravens did their best to blow a 22 point half time lead over the 49’ers during Sunday’s Super Bowl game but somehow persevered. Meanwhile, Beyoncé actually sang during a lively half-time show with costumes and choreography straight from the Brass Rail. During her performance of “Put a ring on it” the stadium was lip-synching “put a sock in it” but to no avail.

Today’s Range 0.9950-1.0010

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

Tél.647-345-9099

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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