THE TIPSTER

 
Philip Salter
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AS crude oil fell below $97 in line with other commodities, the knock on effect was a negative impact for the Canadian dollar versus the US dollar. Crude oil is Canada’s biggest export and the largest supplier of crude to the US. If crude continues in its current trend, it could prove detrimental for the loonie. Capital Spreads quotes dollar-Canadian dollar at Ca$0.9725.

The yen may be suffering from some short term weakness, but most analysts appear to remain rather bearish on this currency pair. The US economy remains mired in debt and there’s mounting pressure for the nation’s debt ceiling – already at $14.3 trillion – to be extended further. So with this issue in play, a weaker dollar is certainly going to find a wealth of support. Current IG Index quotes dollar-yen ¥81.72-¥81.73

It looks like the strategy to sell rallies in sterling-Swiss franc towards SFr1.45 as tipped last week is working pretty well so far and there seems to be no reason to change the plan for this week. The rally last Wednesday to SFr1.4540 highs didn't last long and saw the pair fall to as low as SFr1.4282 on Monday and yesterday’s pop to SFr1.4464 was also met with heavy selling. Spread Co offers a spread on sterling-Swiss franc of SFr1.4375-SFr1.4381.

Yesterday’s RBA minutes seem to suggest that while upward pressure on prices is likely to increase, the Reserve Bank remains reluctant to raise rates in the near term. With this in mind upside potential in the Australian dollar could well be limited, especially if commodity prices remain on the soft side. CMC Markets quotes Australian dollar-dollar $1.0578-$1.0580.