May 3, 2013
|USD/CAD Open 1.0105-1.0110 Overnight Range 1.0098-1.0130
The Canadian dollar sold off yesterday afternoon on news that Canada named Stephen Poloz, Governor of the Bank of Canada, causing some investors to leap to the conclusion that all current BoC policies would be off the table. The big question of “ Is he a Hawk or a Dove” was easily answered. He’s a Canadian so obviously, a Loon. Selling CAD$ because of the new governor will prove to be misguided. Elsewhere, markets were mostly quiet awaiting today’s US payrolls report (forecast +140k)
The short term USD/CAD technicals are now bullish with the failure to extend US dollar losses through 1.0050 and the subsequent break back through resistance at 1.0080 and 1.0110 targets 1.0150. In addition, the longer term US dollar uptrend channel from 0.9830 and currently at 1.0030 remains intact. and the US dollar is still trading above the 38.2% Fibo retracement at 1.0165
And in other news, the Ontario Liberal party delivered the NDP’ s budget for Ontario last night in a blatant attempt to stay in power by buying the NDP party. The only thing left for Ontario Premier Wynn is to show up at the NDP leader Andrea Horwarth’s door with flowers and wine and consummate their marriage. Doing to Andrea what she is doing to Ontario taxpayers.
Today’s Range 1.0110-1.0170