Loonieviews March 1, 2013


March 1, 2013

USD/CAD 1.0318-23 Overnight Range: 1.0290-1.0330

The Canadian dollar stayed under pressure overnight with the break of 1.0280 setting the stage for a further weakness to 1.0450, unlikely to garner any support from today’s Canadian Dec. GDP data (forecast -0.2% MoM). The Cardinals are sequestering in the Vatican to elect a new pope. In American, the politicians are sequestering because they don’t like the term, dysfunctional. Meanwhile, the US dollar climbs against the majors. Today’s US data releases include: Personal Consumption, Markitt Manufacturing, Michigan Consumer Sentiment, Construction Spending and ISM Manufacturing. The Nikkei rose but the Hang Seng and the ASX 200 dropped. European equity indices were all lower and NY equity index futures are down as well. Gold is $1,570.90 and WTI oil is $90.77

The short term USD/CAD technicals are bearish. The USD/CAD rate is in a steep uptrend bound by 1.0250 on the bottom and currently 1.0385 on the top. In addition, the break of resistance at 1.0280 targets 1.0450 and should now act as support. For today, USD support is at 1.0310 and 1.0290. Resistance is at 1.0360 and 1.0380.

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And in other news, a zoo in Scotland is reportedly playing Marvin Gaye tunes in an effort to get its Panda’s to mate. So far two zoo keepers and a pair of seniors were successful. The Panda’s may have been distracted watching the frolicking couple outside their enclosure.

Today’s Range 1.0310-1.0360

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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