FX Morning Update August 23, 2011

USD/CAD Open: 0.9875-79 Overnight Range: 0.9850-0.9909

The Canadian dollar traded sideways overnight. NY futures are pointing higher. Overnight, better than expected PMI manufacturing data in Asia and Europe has boosted risk sentiment. Oil is higher at $85.41 and gold is at $1,886. Retail sales and US new home sales data is released today.

The short term Canadian dollar technicals remain negative. For the most part, the USD/CAD continues to trade between 0.9750 to 0.9950 over the last few weeks. For today, USD resistance is at 0.9905, 0.9955, 0.9974, and 0.9999. Support is at 0.9850, 0.9805, 0.9775 and 0.9667.

Positive manufacturing data from Europe and Asia have markets buying risk currencies and equities. Furthermore, the hope that Bernanke will offer guidance to stimulate the economy further on Friday is also starting to be priced in to the markets. Retail sales if positive should boost the loonie today. The market is positioning itself and trying to determine if the FED will jump in and provide stimulus, expect volatility to continue as markets take sides as to what the FED will do.

Today’s Range: 0.9810 – 0.9910

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

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