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
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Vice President, FX Trading