FX Morning Update September 26, 2011
USD/CAD Open: 1.0291-91 Overnight Range: 1.0260-1.0386
The Canadian dollar was volatile in overnight trading. European markets are higher today as rumors are circulating that the size of the eurozone rescue fund will be increased. NY futures are pointing higher. Oil is at $79.82 and gold is at $1,620. For today, new home sales and Fed mfg. data is released today.
The short term Canadian dollar technicals are negative targeting 1.0400 USD/CAD. Speculators are now bullish on the USD with long positions. For today, USD resistance is at 1.0350, 1.0375, 1.0450, and 1.0510. Support is at 1.0250, 1.0213, 1.0131, 1.0091, and 1.0025.
European headlines will continue to be the focus as traders try to determine if global leaders will introduce stimulus and if the eurozone leaders will significantly expand the size of the capital available to bailout banks and at-risk countries. The key question driving the risk-on risk-off trade continues to be if eurozone officials can handle their debt crisis. Eurozone policy makers have had trouble obtaining approval by taxpayers to bailout other countries but the recent gloom should help with persuasion. However, no concrete plans have been revealed on an increase in the size of the fund. A German finance official indicated the next aid delivery forGreecehas yet to be finalized, which could continue to lead to volatile trading this week. The loonie should continue to follow oil prices and equities in volatile and choppy trading.
Today’s Range: 1.0225 – 1.0380
By Admin | September 27, 2011 | Daily Update |
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