LOONIEVIEWS 16 Dec 14
Loonie sidelined in free-wheeling, free-falling overnight session
USDCAD Open 1.1640-45 Overnight Range 1.1636-1.1669
USDCAD was on the sidelines for a free-wheeling, free-falling, no holds barred overnight session which was kicked off by USDJPY, sliding, then plunging and then sliding some more. A falling Nikkei was the catalyst for USDJPY bulls to stampede for the exits. The US dollar decline spread through the G-10 currencies, except for NOK which got spanked again on falling oil. The loonie barely budged.
The big data dump in Europe and the UK was overshadowed by the big dollar dump, a result of profit protection ahead of the holiday season. The North American session may be a tad quieter due to a lack of top tier data.
Confirmation that Repsol S.A would acquire Canada’s Talisman Energy Inc. for CAD$15 billion cash is a nice positive for the loonie but since the deal doesn’t close until Q2 2015, it won’t have any impact.
The intraday USDCAD technicals are bullish while trading above 1.1625 with a break above 1.1670 pointing to 1.1735. Below 1.1625, risks a drop to 1.1540.
Today’s Range: 1.1570-1.1670