February 22, 2013
USD/CAD 1.0190-95 Overnight Range: 1.0161-1.0196
The Canadian dollar rally from yesterday afternoon continued throughout the Asian session but couldn’t crack US dollar support at 1.0160 and gave back most of the ground when Europe came in. The 8:30 am release of poor retail sales data for Canada ignited another wave of selling and the USD/CAD rate is currently 1.0228-33. AUD/USD made some decent gains on positive remarks by the RBA governor. In Europe, better than expected German IFO data offset to a degree, disappointing LTRO payments. Asian (except Hang Seng) and European equity indices are all higher as are NY equity index futures. Canadian data releases today include, CPI (Actual-Core 1.0%, YoY) and Dec. Retail Sales (Actual forecast -2.1%) WTI is $93.19 and gold is $1,579.50
The short term USD/CAD technicals are bullish. The USD/CAD has been in a nice steady uptrend channel for the past week with the break of USD resistance at 1.0080. It is currently bound by 1.0170 on the bottom and 1.0230 on the top. For today, USD support is at 1.0180 and 1.0160. Resistance is at 1.0230 and 1.0250
And in other news, al-Qaeda terrorist, fleeing Timbuktu, left behind training documents, one of which listed “22 ways to avoid a drone attack” Included in the list were such gems as “hide under thick trees” and my favorite “ Dismount from camel or goat, face Mecca, bend low, grab ankles, praise Allah and kiss your ass goodbye”
Today’s Range 1.0180-1.0240
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