FX Morning Update December 7, 2011
USD/CAD Open: 1.0105-07 Overnight Range: 1.0070-1.0110
The Canadian dollar was quiet overnight. Overnight, Germany industrial production data was largely positive. Yesterday, the Bank of Canada kept rates the same and didn’t really indicate there would be any imminent cut in rates as growth in Canada would be stronger than expected in the second half, positive for the loonie. Oil is at $101.05 and gold is at $1,726. NY futures are slightly positive today. There are no major data releases today.
The short term Canadian dollar technicals are negative while above parity. For today, USD resistance is at 1.0140, 1.0180, 1.0220, 1.0274, and 1.0320. Support is at 1.0110, 1.0080, and 1.0030.
Rumors that no deal may be reached this weekend on a solution to the eurozone issue has crept in to the market. However, the cost of insuring eurozone debt has been declining suggesting things are getting better from a risk sentiment. There are also rumors that another eurozone bailout fund is in the works which would be twice the size of the initial fund. Markets seems to be quiet and looking for direction as we await the eurozone summit outcome on Friday. Look for rangebound trading in the absence of new headlines.
Today’s Range: 1.0060 – 1.0160
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By Admin | December 7, 2011 | Daily Update | 0 comments