Loonieviews February 7, 2013

February 7, 2013

USD/CAD 0.9953-58 Overnight Range: 0.9934-0.9964

The loonie continued to be ignored during the Asian session but got a bit of lift during the European session when small stops below 0.9950 got triggered. The USD/CAD dipped to 0.9934 but quickly reversed course. The governor of the Bank of Canada was the star of the show during the European session but not for anything Canada-centric. His remarks to the UK Treasury Select committee were closely scrutinized for hints of how he will perform when he takes the helm of the Bank of England in 5 months. (so who is picking up his expenses-his current employer or his future employer? Also if he is working on his plan for the UK, who is minding the store at the BoC?) US jobless claims are released and expected to come in at 360K. WTI is at $96.97 and gold is $1,677.20

The short term USD/CAD are bearish looking for a test and break of 0.9910 to extend US dollar losses to 0.9880 and then 0.9840. A move above 0.9980 will lead to 1.0010 and then 1.0040.

And in other news, the Canadian Immigration minister, Jason Kenney is planning to strip the citizenship rights of Canadians if they are involved in terrorism. The semtex in the suicide vest will strip the Jihadist of everything else, making Kenney’s actions redundant.

Today’s Range 0.9910-0.9970

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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