FX Morning Update August 17, 2011

USD/CAD Open: 0.9796-99 Overnight Range: 0.9791-0.9843

The Canadian dollar grinded higher overnight. Yesterday’s meeting between French President Sarkozy and German Chancellor Angela Merkel didn’t produce any material results. Oil is higher at $88.03 and gold is higher at $1,790. NY futures are pointing slightly higher today. The EIA releases oil inventories and the US releases PPI data today.

The short term Canadian dollar technicals remain negative but the loonie is still in a long term uptrend. For today, USD resistance is at 0.9850, 0.9955, and 0.9974. Support is at 0.9750 and 0.9667.

Worries over growth in the eurozone and US continue to linger and put a cloud over the markets. President Obama appears to be working on a stimulus bill, which if grand, should boost the loonie. The markets continue to try to assess whether the US economy will grind through this softpatch and eventually move higher (bullish for the loonie) or if the economy is headed lower (loonie negative).

Today’s Range: 0.9725 – 0.9850

By Admin | September 11, 2011 | Daily Update | 0 comments

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