FX Morning Update August 26, 2011
USD/CAD Open: 0.9869-72 Overnight Range: 0.9854-0.9883
The Canadian dollar traded sideways in a tight range overnight. Yesterday, Warren Buffet made a preferred investment in BofA and that boosted financials initially but weak jobless claims put a downer on equity markets. NY futures are negative. Oil is at $84.13 and gold is at $1,781. Today, all eyes are on preliminary US GDP, US consumer sentiment, and Bernanke’s speech.
The short term Canadian dollar technicals remain negative but the USD/CAD has been consolidating 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, 0.9801, 0.9775 and 0.9667.
Helicopter Ben is speaking today and if he surprises the market with strong stimulus, which would boost equity markets and likely the loonie. However, many believe it’s unlikely as there has been internal Fed dissent, previous QE measures have been questionable, and the inflation situation is different. Data released today should also directionally move markets and help determine where the US economy is headed. The market seems content trading in a tight range recently and is looking for a firmer view as to where the economy is going – a weaker economy would support a flight to safety to the USD, while expectations of an upturn would boost commodities and the loonie.
Today’s Range: 0.9825 – 0.9950
Rahim Madhavji | Knightsbridge Foreign Exchange
By Admin | September 11, 2011 | Daily Update |
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