FX Morning Update November 23, 2011
USD/CAD Open: 1.0420-22 Overnight Range: 1.0374-1.0454
The Canadian dollar was under pressure overnight vs. the USD as China reported weaker than expected manufacturing data and Germany had trouble selling some bonds. Yesterday, US GDP data was revised downward. Oil is at $95.90 and gold is at $1,690. NY futures are pointing lower. Today, US releases include durable goods, personal income, and jobless claims data.
The short term Canadian dollar technicals remain negative. For today, USD resistance is at 1.0430, 1.0450, and 1.0510. Support is at 1.0370, 1.0320, 1.0260, 1.0213, and 1.0131.
Bad news continues to plague the market. Chinese manufacturing data came out weak and started to scare markets about heading in to a recession. The bailout of Dexia could be falling apart and a weak German auction is frightening considering its Germany. Markets will be volatile today ahead of tomorrow’s US thanksgiving holiday. For the risk-on trade to start, the markets seem like they need a boost of confidence, likely to be driven by eurozone policymakers stating a greater role for the ECB in bond buying, something Germany is against.
Today’s Range: 1.0375 – 1.0475
Daily Market | Knightsbridge Foreign Exchange
By Admin | December 2, 2011 | Daily Update |
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