FX Morning Update November 17, 2011
USD/CAD Open: 1.0263-65 Overnight Range: 1.0208-1.0271
The Canadian dollar was volatile in overnight trading. Yesterday’s US CPI result came in as expected and US industrial output and capacity utilization data was better than expected. Oil is at $100.92 and gold is at $1,749. NY futures are lower today. Today, the US releases the weekly jobless report.
The short term Canadian dollar technicals continue to 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.
Risk sentiment remains negative on rumors that Fitch may change the rating on US banks due to their exposure to European sovereign debt. Spanish bond yields on their latest auction continued to climb highlighting an increasing risk premium that buyers require. Despite recent US data that has come out moderately positive, the focus remains on the eurozone and contagion and the same old issue of if eurozone countries can control their debt problems and not allow any banks that own the debt to fail. It looks like the loonie’s rise will be limited without further progress on the eurozone front.
Today’s Range: 1.0220 – 1.0320
Daily Market | Knightsbridge Foreign Exchange
By Admin | November 17, 2011 | Daily Update |
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