Loonie pressured despite US dollar retreat 9Dec14


Loonie pressured despite US dollar retreat

USDCAD Open 1.1470-74 Overnight Range 1.1465-1.1499

USDCAD and AUDUSD lost ground overnight despite a wide-spread sell-off in the US dollar against G-10 overnight. Chinese actions were at the center of the storm in Asia with a plunge in the Shanghai equity exchange and rumours of additional PBOC easing. JPY and EUR both rallied in part due to position adjustments as yearend approaches.

Fitch Ratings has placed Japan’s ‘A+’ Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) on Rating Watch Negative (RWN).

Note: (From SEC filing) “the election deadline for Tim Hortons shareholders and Burger King Worldwide (BKW) stockholders to specify the type of consideration they wish to receive in the merger is December 9, 2014 at 5:00 p.m. (EST). “

I am convinced that BKW is quietly buying Canadian dollars to close this deal which will slow USDCAD gains.

The intraday USDCAD technicals are bullish while trading above 1.1460 (Currently 1.1464) looking for another test of the overnight high (1.1499) enroute to the 1.1530 resistance level from July 2009. A move below 1.1460 could extend short term losses to 1.1420,

Today’s Range 1.1420-80

Categories FX, Foreign Exchange, Currency, Canadian Dollar

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