FX Morning Update Aug.30
USD/CAD Open 1.0495-00 Overnight Range 1.0475-1.0510
The CAD$ had a quiet session to start the week. The Asian focus was on an “Emergency Bank of Japan meeting”, originally thought to include a round of intervention to devalue the JPY. The USD/JPY rallied in front of the news and then quickly reversed itself as the market concluded the BoJ stimulus plan was lacking. The UK Markets were closed. Asian equity indices were higher, European indices mixed, and NY futures pointing down to flat. US data releases include Personal Spending, and Personal Income. Canada has Trade Balance.
The short term CAD$ technicals are still mixed as the currency bounces around in a 1.0460-1.0660 band. A move below 1.0460 suggests a retest of 1.0250 while a break above 1.0550 argues for further CAD weakness to 1.0660. For Today, USD support is at 1.0460 and 1.0410. USD resistance is at 1.0530 and 1.0550.
Month end CAD selling pressures and equity market weakness may combine to push the loonie lower today. In addition, Friday’s US employment report will ensure choppy trading until the data is released.
Today’s Range 1.0460-1.0540
Rahim Madhavji | Knightsbridge Foreign Exchange
By Admin | September 11, 2011 | Daily Update |
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