Loonieviews April 23, 2013

April 23, 2013
USD/CAD Open 1.0255-60 Overnight Range 1.0252-1.0272

The Canadian dollar just spun its wheels overnight, going nowhere in another sloppy directionless market. Another Japanese Lifeco said that they may increase overseas investments, boosting USD/JPY but not enough for it to crack 100. The Kiwi rose on bullish comments from the CB governor. In Europe, the EUR/USD was lightly stung by another disappointing report from Germany, this time from the IFO business climate index (104.4 vs. Mar 106.7) Global equity indices are all higher (Except FTSE) as are NY equity index futures. Gold is $1,421.40 and WTI is $89.68

The short term USD/CAD technicals are neutral within a narrow 1.0250-1.0300 band, needing a break either side to shift to a bullish or bearish stance. The weekly chart below shows the USD/CAD uptrend and highlights the importance of the 1.0280-1.0310 zone. A break here would argue for further USD gains to 1.0600

And in other news, on Saturday, a customer and a teller were shot by bank bandits in Toronto. The customer tackled one thug who promptly shot a teller in the leg and the customer in the belly before getting away. Police do not recommend that civilians interact with gun toting thugs but denied that they would charge the customer with “improperly storing ammunition”. Liberal leader, Justin Trudeau remained perplexed at the bandit’s actions and called for a committee to study the root causes of disenfranchised youth suggesting the banks were at fault “ it’s the lure of easy money, it’s got a very strong appeal”.

Today’s Range 1.0250-90

Michael O’Neill


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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