FX Morning Update November 21, 2011
USD/CAD Open: 1.0354-57 Overnight Range: 1.0271-1.0360
The Canadian dollar got hit hard overnight vs. the USD. European and Asian markets dropped overnight. Oil is lower at $96.62 and gold is at $1,708. NY futures are pointing lower today. This week in Canada, wholesale sales (Mon.), retail sales (Tue.), and corporate profit (Fri.) data are released.
The short term Canadian dollar technicals remain negative and the loonie seems to have broken out of its recent range of late. For today, USD resistance is at 1.0370, 1.0410, and 1.0450. Support is at 1.0320, 1.0260, 1.0213, and 1.0131.
The overall market tone is largely negative. Sovereign debt spreads have continued to climb for Italy, Spain, and France. Moody’s has warned on France and German, citing France’s AAA rating is at risk and Germany’s financial system is at risk due to eurozone exposure. It is rumored that the supercommittee will fail to agree on cuts by Wednesday as they were tasked to do, a reminder to the markets of bickering that could be to come. Speculators are long USD and short Euro’s. The key focus remains Europe and how quickly policymakers can react to indicate unity in stopping this debt crisis.
Today’s Range: 1.0300 – 1.0400
Daily Market | Knightsbridge Foreign Exchange
By Admin | November 21, 2011 | Daily Update |
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