February 14, 2013
USD/CAD 1.0005-10 Overnight Range: 1.0003-1.0023
The USD/CAD rate has quickly reversed most of last week’s gains managing to grind through 1.0010 support during the European session. In Asia, the Bank of Japan meeting proved to be uneventful as was widely expected. The EUR got spanked again on weak 4 Q GDP data (Actual -0.6%, vs forecast -0.4%) The G-20 finance ministers meeting starts tomorrow. The Russian Finance Minister is already yammering about exchange rate manipulation which suggests that traders will be on the lookout for any exchange rates bombs. Asian equity indices were higher but European equity indices and NY futures indexes are lower. Gold is $1,647.70 and WTI is %97.13.
The short term USD/CAD technicals are bearish while trading below 1.0040 looking for a break of 1.0010 to extend US losses to 0.9990. Below 0.9990 puts 0.9940 into play. Above 1.0040 suggests further 0.9980-1.0080 consolidation. For today, US support is at 0.9990 and 0.9970. Resistance is at 1.0020 and 1.0040.
And in other news, Berkshire Hathaway has teamed up with 3G Capital and asked H.J. Heinz to be their Valentine for $28 billion dollars which is a lot of ketchup. Shareholder’s are unaminous in their feelings that “Good things do come to those that wait”
Today’s Range 0.9980-1.0020
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.
Vice President, FX Trading