FX Morning Update December 6, 2011
USD/CAD Open: 1.0169-72 Overnight Range: 1.0145-1.0198
The Canadian dollar traded rangebound overnight vs. the USD. Overnight, Australia’s RBA cut rates as widely expected due to lower growth expectations and issues in Europe. Yesterday, S&P put 15 eurozone countries on negative watch (including Germany and France) adding to negative risk sentiment in Asian and European markets overnight. Oil is at $100.82 and gold is at $1,717. NY futures are flat. Today, the Bank of Canada releases its interest rate decision.
The short term Canadian dollar technicals remain negative. For today, USD resistance is at 1.0180, 1.0220, 1.0274, and 1.0320. Support is at 1.0140, 1.0110, and 1.0080.
Markets remain focused on a key meeting from eurozone policymakers at the end of the week to see if any significant progress has been made to contain the eurozone debt crisis. Meanwhile, markets continue to see-saw based on snippets of positive and negative news, trying to anticipate the next bit of news. The Bank of Canada is widely expected not to change rates, but the focus will be on the commentary to see if considerable stimulus is enough or if more is required. A change in tone that even more stimulus may be required would be loonie negative. The loonie remains largely correlated to the S&P 500 and risk sentiment (driven by Europe) and expect this to continue.
Today’s Range: 1.0160 – 1.0260
Daily Market | Knightsbridge Foreign Exchange
By Admin | December 7, 2011 | Daily Update |
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