FX Morning Update November 9, 2011
USD/CAD Open: 1.0196-99 Overnight Range: 1.0103-1.0208
The Canadian dollar tanked overnight vs. the USD. Overnight, China’s inflation data was less than expected but eurozone issues have impacted the loonie. Oil is at $95.22 and gold is at $1,783. NY futures are pointing lower today. There are no major data releases today.
The short term Canadian dollar technicals remain negative. Lately, the USD/CAD has been trading between 0.9900 and 1.0270, consolidating in between, looking for direction. For today, USD resistance is at 1.0213 and 1.0260. Support is at 1.0131, 1.0031, and 0.9980.
Berlusconi looks to be out soon and equities rallied yesterday, but today is a different tone for the markets. LCH Clearnet, a clearinghouse, increased margin requirements on Italian bonds and Italian bond yields continue to climb highlighting uncertainty and this has impacted the euro and the loonie as a result, as traders have flocked towards the US dollar. Greece is still trying to form a new government. Headlines that Iran is doing something they are not supposed to with nuclear plans and the threat that they may be bombed is supporting oil prices but is a risk to the risk-on trade. Risk-off is the theme today and look for the loonie’s direction to be driven by eurozone headlines.
Today’s Range: 1.0150 – 1.0280
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By Admin | November 11, 2011 | Daily Update | 0 comments