FX Morning Update November 16, 2011
USD/CAD Open: 1.0263-65 Overnight Range: 1.0208-1.0289
The Canadian dollar continued to feel pressure overnight. Oil is at $99.20 and gold is at $1,771. NY futures are pointing lower today. Today, US CPI and industrial production data are released.
The short term Canadian dollar technicals remain negative. For today, USD resistance is at 1.0260, 1.0320, and 1.0450. Support is at 1.0213, 1.0131, 1.0031, and 0.9980.
The USD has been gaining strength against many currencies on a flight to safety. Equity markets are lower and risk sentiment is poor, causing traders to flock to the USD. Risk sentiment will be the primary driver of the loonie’s direction, even though oil prices are near $100. Rumors that Italian banks require funding has not helped the Canadian dollar. For the loonie to rebound, we may need to see eurozone policymakers show actions that demonstrate they are proactively containing the crisis, something we have not seen much of late. All eyes continue to be on Europe.
Today’s Range: 1.0220 – 1.0320
Daily Market | Knightsbridge Foreign Exchange
By Admin | November 16, 2011 | Daily Update |
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