Loonieviews May 13, 2013

May 13, 2013
USD/CAD Open 1.0109-1.0114 Overnight Range 1.0106-1.0132

The Loonie may have suffered whip-lash on Thursday when the uptrend failed around the 1.0010 area and retraced through what ended up being non-existent resistance in the 1.0040-80 zone. It is starting the week, still on the defensive on the back of a resurgent US dollar vs. the majors. Soft commodity prices and an Australian budget tonight contributed to on-going AUD/USD weakness. The G-7 tacitly endorsed Japan’s devaluation of the yen (again) while the Italian Central Bank governor called for the ECB to post negative interest rates keeping the US dollar bid. The Nikkei and ASX200 were up, while the Hang Seng, the European equity indices and NY equity index futures are all down. Gold is $1,428.10 and WTI oil is $95.11 Today’s US data includes US Retail Sales (April -0.3%)

The short term USD/CAD technicals are bullish while trading above 1.0106 (overnight low) with a break above 1.0140 suggesting a move to 1.0180 and 1.0240. Only a dip back below 1.0080 negates the uptrend and argues for 1.0040-1.0140 consolidation

And in other news, an American Airlines flight from LA to New York was diverted to Kansas City to eject a woman who refused to stop singing a Whitney Houston song. The woman was cuffed and subdued by an onboard air marshal which makes the diversion a tad unnecessary and upon landing, she was released without charges. The Airline said that the woman was being “disruptive and interfering with the flight crews” a rather dubious accusation unless she was sitting on the pilot’s lap in the cockpit. It was also disclosed that taking a picture on an aircraft is illegal.

Today’s Range 1.0080-1.0140

Michael O’Neill


Categories FX, Foreign Exchange, Currency, Canadian Dollar

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