Loonieviews March 5, 2013

March 4, 2013

USD/CAD 1.0262-67 Overnight Range: 1.0253-1.0277

The Canadian dollar continued its rally from 1.0300 touching 1.0253 in overnight trading in part because of a slight shift toward risk but traders are still leery ahead of the central bank meetings this week. In Asia, a bout of profit taking gave the JPY a boost while better than expected data from Australia underpinned the AUD/USD. Better than expected Eurozone data gave the EUR/USD a lift. Global equity indices and NY equity index futures all rose. WTI oil is $90.6 and gold is $1,582.70

The short term USD/CAD technicals are mixed. USD bears believe the CAD rally from 1.0300 remains intact, confirmed by the breach of 1.0260 overnight and that US dollar pullbacks will be limited to 1.0290. USD bulls believe that the US dollar uptrend from mid-February remains intact while trading above 1.0250. For today, USD support is at 1.0260 and 1.0230. Resistance is at 1.0290 and 1.0310

And in other news, a seven year old student in Baltimore was suspended for two days when his teacher decided that the Kellogg’s pop-tart that he was eating, “looked like a gun” which was deemed inappropriate. In a related story, a retired racehorse in Baltimore was kicked out of his stable because the manager thought that the horse’s ass looked like a Baltimore teacher.

Today’s Range 1.0220-1.0290

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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