Parity On September 8th

Today the BoC will release its interest rate decision and its accompanying statement. Canadian retail sales are also on the economic calendar though markets will be squarely focused on the BoC. The CAD has recovered nicely with the USD/CAD looking to move back below parity today. Inflation is beginning to pick up in the developed economies of the world (US core 2.0% and UK 3.3%) and Canada is no exception to this phenomenon. Last week Statistics Canada reported a larger than expected jump in core Canadian inflation rising 0.5% m/m and 2.2% y/y. The BoC had previously forecasted inflation to be 1.9% y/y. The increased inflationary pressures will likely complicate matters for the BoC given the headwinds in the global economy with a slowing Chinese economy and a cloudy horizon in Europe ...

Commentary of the AUD/USD parity: The pair AUD/USD felt yesterday and has validated the breakout of 0.98, offering a sell signal. Then, the pair found support on 0.97 and is currently trying a return above 0.98. The pair is still above its long term bullish channel. All indicators are bearish. We maintain to trade only short positions as far as 0.99 is resistance. The breakout of 0.97 will give a new sell signal and open the way towards 0.96. In case of return above 0.99, we will wait the breakout of 1.0 to advise long positions. See the previous analysis of the AUD/USD parity of September 28th, 2011 AUD/USD Analysis

Commentary of the AUD/USD parity: The pair AUD/USD continued its bullish correction yesterday towards 1.0 (level who matches with the upper band of its bearish channel). The pair just validated a return below 0.99. Indicators are now globaly bullish. We stay neutral on the pair between 0.98 and 1.0. We advise to wait an exit of this range to take position: - Long if 1.0 is broken. The breakout of 1.01 will give a new buy signal. - Short if 0.98 is broken. The breakout of 0.97 will give a new sell signal. See the previous analysis of the AUD/USD parity of September 27th, 2011 AUD/USD Analysis

Commentary of the AUD/USD parity: The pair AUD/USD continues to move on 1.06 as support. The pair is still above its bullish slant. All indicators are bullish. We maintain to trade only long positions as far as 1.0550. The breakout of the next resistance at 1.07 will give a new buy signal and open the way towards 1.08. In case of return below 1.0550, we will wait the breakout of 1.05 to advise short positions. See the previous analysis of the AUD/USD parity of September 8th, 2011

Commentary of the AUD/USD parity: The pair AUD/USD has validated the breakout of 1.06, offering a buy signal. The pair is now back on this level for a pullback. Indicators are globaly bearish. We maintain to trade only long positions as far as 1.0550. The breakout of the next resistance at 1.07 will give a new buy signal and open the way towards 1.08. In case of return below 1.0550, we will wait the breakout of 1.05 to advise short positions. See the previous analysis of the AUD/USD parity of September 7th, 2011

The Week Ahead Highlights Risk sentiment stumbles again Waiting for Jackson Hole Are 'safe-havens' due for a short-term pullback? SNB intervention risk is here to stay The ECB calms sovereign debt markets Key data and events to watch next week Risk sentiment stumbles again Risk assets (stocks, commodities, JPY- and CHF-crosses, and commodity currencies) stabilized further to start this past week, but suffered what seems likely to be the first in a series of periodic relapses, as market conviction remains extremely low. We remain cautiously optimistic that the sell-off in the first half of August marked the low point in the current risk retrenchment, but we are keenly aware that risks remain skewed to the downside. In support of the view that a medium-term bottom ...

Commentary of the AUD/USD parity: The parity continues its bullish rallye and validated a breakout of the resistance at 0.96, offering a new buy signal. Currently, the price is testing the next one at 0.97. Indicators are globaly bullish. We maintain to trade only long positions as far as 0.96 is support. The breakout of 0.97 will give another buy signal. The next resistance is at 0.98. See the previous analysis of the AUD/USD parity of September 28th, 2010

Commentary of the EUR/CHF parity: The parity continues to move above its bullish slant and is currently testing the resistance at 1.33. Indicators are globaly bullish. We advise to trade only long positions as far as the price is above 1.32 or above its bullish slant. The breakout of 1.33 will give a new buy signal. The next resistance is at 1.34. See the previous analysis of the EUR/CHF parity of September 28th, 2010

Commentary of the EUR/GBP parity: The parity fake a breakout of the support at 0.85. The return above this level gave us a buy signal. All indicators are getting bullish and the price is currently testing the resistance at 0.86. We maintain to trade only long positions as far as 0.8550 is support. The breakout of 0.86 will give another buy signal. 0.88 is the next major resistance. See the previous analysis of the EUR/GBP parity of September 28th, 2010