FX Morning Update November 18, 2011
USD/CAD Open: 1.0210-14 Overnight Range: 1.0248-1.0298
The Canadian dollar was volatile in overnight trading and gained vs. the USD on today’s Canadian CPI report and overall positive risk sentiment today. Oil is at $99.88 and gold is at $1,732. NY futures are pointing higher today.
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 Canadian CPI report released today (2.8% headline and 1.9% core) was generally in line with estimates and broad USD weakness has allowed the loonie to gain. Italian bond yields are trading lower today than yesterday. Views that ECB support by buying sovereign debt (rumors) to assist in the debt crisis have allowed the risk-on trade to take effect today. Economic data released of late has been largely positive for the loonie but risk sentiment is dominating the direction. Markets continue to focus on the role of the ECB in debt buying, how eurozone countries are managing their fiscal situations, and the impact EU and US banks will feel if the debt situation gets out of control.
Today’s Range: 1.0195 – 1.0295
Daily Market | Knightsbridge Foreign Exchange
By Admin | November 18, 2011 | Daily Update |
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