May 2, 2013
|USD/CAD Open 1.0070-75 Overnight Range 1.006701.0088
The Canadian dollar sat on the sidelines in a dull overnight session, not unlike the Leafs effort against the Bruins. Yesterday’s FOMC meeting ended with a wishy-washy statement (“the Fed is prepared to increase or reduce…”) which left markets a tad less than inspired. China’s manufacturing PMI came in at 50.4 vs expectations of 50.5. The ECB is widely expected to cut rates to 0.5% from 0.75% so failure to do so could result in a EUR/USD pop. Canada releases Trade data (forecast -0.72 biliion) while US releases include: Jobless Claims (forecast 345K) and Trade Balance (forecast -42 bio). Asian equity indices were down while European equity indices were mixed. NY equity index futures are higher. Gold is $1,455.30 and WTI oil is $91.58
The short term USD/CAD technicals are bearish while trading below 1.0080. There is support at 1.0060, defending the 1.0015 target. A break above 1.0090 should lead to 1.0120 and argue for 1.0060-1.0140 consolidation. For today, USD support is at 1.0060, 1.0030 and 1.0015. Resistance is at 1.0090 and 1.0120
And in other news, a 30 year old New Hampshire man is contemplating suing a carnival after he lost his life savings in a ball-tossing game. Henry Gibbons spent $2,600 at a game called “tubs of fun” in an attempt to win an X-Box Kinect ($99.99 at Target) Gibbons thinks the game was rigged.
Today’s Range 1.0115-1.0190