From: Michael O’Neill [mailto:email@example.com]
Sent: Monday, March 18, 2013 7:40 AM
Subject: Loonieviews March 18, 2013
March 18, 2013
|USD/CAD Open 1.0233-38 Overnight Range 1.0200-1.0244
The USD/CAD spiked higher in overnight trading on a wave of risk aversion trading sparked by news that Cyprus politicians planned a raid on bank deposits, taking 9.9% on EUR deposits over 100.000 and 6.75% on deposits less than 100,000. Locals are panicked and global investors are terrified that politician’s worldwide would view the Cyprus tactic as a viable fund raising tool. Once again, all eyes will be on the FOMC meeting on Wednesday but Bernanke is widely expected to maintain his dovish stance. Global equity indices and NY equity index futures are all lower. Gold is $1,600.00 and WTI is $90.42
The short term USD/CAD technicals are muddled. USD/CAD bears view last week’s break of support at 1.0250 as evidence of further US weakness to 1.0180 and then 1.0120. However, the hourly charts have the USD/CAD in a modest uptrend targeting a break of 1.0260 to lead to 1.0310. For today, USD support is at 1.0220 and 1.0180. Resistance is at 1.0260, 1.0280 and 1.0310.
And in other news, Egyptian vigilantes beat two men accused of stealing a motorized rickshaw and then hung them by their feet. Both men died. Cyprus politicians should be nervous.
Today’s Range 1.0210-1.0260