FX Morning Update August 18, 2011
USD/CAD Open: 0.9852-55 Overnight Range: 0.9801-0.9863
The Canadian dollar lost some ground overnight as European equities are down. Yesterday, France and Germany vowed to cut nations that don’t meet deficit targets out of EU transfer funding, hoping to pressure countries to keep financial discipline. Global equities are down. Oil is lower at $85.35 and gold is higher at $1,815. NY futures are pointing sharply lower today. US inflation data, jobless claims, philly fed index, and Canadian and US leading indicators are released today.
The short term Canadian dollar technicals remain negative. For today, USD resistance is at 0.9850, 0.9955, and 0.9974. Support is at 0.9750 and 0.9667.
European markets were down (banks are taking a hit) and US markets are following on a risk off trade today, driven by the same story of worries over growth prospects and sovereign debt issues. Markets remain on edge as traders try to interpret the direction of the economy. Canadian inflation data released tomorrow, if strong, may put pressure on the Bank of Canada to suggest rate hikes early next year, while a weak inflation report, could see the loonie lose vs. the USD, as the Bank of Canada may have more room to keep rates close to that of the US. Look for economic data to directionally move equities, oil, and the loonie.
Today’s Range: 0.9800 – 0.9900
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By Admin | September 11, 2011 | Daily Update | 0 comments