FX Morning Update-Mar.5
USD/CAD Open 1.0316-21 Overnight Range 1.0301-30
The CAD was quiet overnight as were the major FX markets with traders awaiting the release of the US Nonfarm payrolls report which is expected show a decrease of between 50-100k, mainly due to weather. Last night’s Canadian budget release did not have any impact on the loonie. Gold prices are $1,135.30, Oil 80.79 and equity indices slightly higher.
No change to the CAD Technical picture: The short term CAD technicals are bullish however further gains will face strong US dollar support between 1.0210-50. A break through 1.0200 suggests further CAD gains through parity to 0.9750. To the top, USD resistance comes in at 1.0330, 1.0370 and 1.0410.
The week is ending without any new direction. The Greek debt issue has diminished but has exposed the short comings of Euroland which would suggest a lower EUR/USD but since the market is already well short of EUR’/USD, further EUR losses will be slower. The CAD rally is also running out of steam in the 1.02’s, setting up further 1.02-1.0550 consolidation.
In other news, the Liberal leader, “Iggy the Import” expressed extreme dissatisfaction with the Conservative budget, but won’t vote against it because that would lead to an election and voters expressing extreme dissatisfaction with Iggy, leading to a conservative majority and the unemployment line for him
Today’s Range 1.0250-1.0350
Michael O’Neill | Knightsbridge Foreign Exchange
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By Admin | September 11, 2011 | Daily Update | 0 comments