Loonieviews May 7, 2013

May 7, 2013
USD/CAD Open 1.0037-42 Overnight Range 1.0037-42

The Canadian dollar has cracked through US dollar support in the 1.0050-60 area as is enroute to 0.9980 at a minimum. In Asia, the Aussie came under pressure when the RBA surprised half the market and cut rates 25 bps to 2.75% leading to expectations of more cuts to come. The USD/JPY’s attempt at 1.00 failed at 0.9950. In Europe, the EUR/USD got a bump on better than expected German factory orders as UK traders returned from a long weekend. The ASX200 dipped on the rate cut but the other Asian equity indices were higher as were the European indices. NY equity index futures are also in positive territory. Gold is at $1,459.30 and WTI oil is $95.63

The short term USD/CAD technicals are bearish while trading below 1.0075 on the hourly charts looking for a break of 1.0020 to extend US dollar losses to 0.9980 (0.99880 is the 50% fibo retracement of the 0.9630-1.0340 range) For today, USD support will be at 1.0025. 1.0005 and 0.9980. Resistance will be at 1.0060 and 1.0080.

And in other news, delusional, service challenged TTC wants to take over the operation of the money losing BIXLI bike rental operation in Toronto. TTC chair, Karen Stinz insists that the TTC is the best equipped to operate the bike rental service because the TTC has a quasi monopoly for providing over-priced, money losing, lousy transit services in the city of Toronto.

The TTC’s vision of bikes in Toronto The reality of bikes in Toronto

Today’s Range 1.0050-1.0090

Michael O’Neill


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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