FX Morning Update December 1, 2011
USD/CAD Open: 1.0190-94 Overnight Range: 1.0170-1.0225
The Canadian dollar was quiet in overnight trading holding on to yesterday’s gains vs. the USD. Yesterday, Canada’s GDP data came in strong at 3.5%. Oil is at $100.59 and gold is at $1,753. NY futures are flat. Today, US jobless claims and ISM mfg. data are released.
The short term Canadian dollar technicals remain negative. For today, USD resistance is at 1.0220, 1.0274, and 1.0320. Support is at 1.0180 and 1.0110.
Yesterday’s massive rally took place after central banks took coordinated action to reduce the cost of obtaining US dollar liquidity, especially for eurozone banks. While many consider the central bank action as a short term solution which doesn’t fix the eurozone problem, this coordinated action does help prevent a liquidity crunch that could exacerbate in to a tailspin where eurozone banks don’t transact with each other. Both Spain and France had successful bond auctions, boosting risk sentiment. Markets will be focused on Sarkozy and Merkel’s speeches today and tomorrow and also the US and Canadian jobs report released tomorrow for direction.
Today’s Range: 1.0150 – 1.0250
Daily Market | Knightsbridge Foreign Exchange
By Admin | December 2, 2011 | Daily Update |
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