FX Morning Update October 13, 2011
USD/CAD Open: 1.0197-99 Overnight Range: 1.0165-1.0233
The Canadian dollar traded in a tight range in overnight trading. Overnight, stronger than expected Australian employment data boosted the loonie but weaker Chinese trade data dampened sentiment. NY futures are pointing lower. Yesterday’s FOMC minutes indicated concern about economic growth and employment and that more may need to be done should employment concerns remain. Oil is at $84.42 and gold is at $1,672. Today, trade data is released in Canada and the US as well as US jobless claims.
The short term Canadian dollar technicals remain negative. For today, USD resistance is at 1.0213, 1.0250, 1.0373, and 1.0450. Support is at 1.0131, 1.0057, and 1.0005.
More details about the eurozone plan to recapitalize banks have been released and the execution of this plan remains the key risk for the loonie. Global equity markets seems to be directionally driven by the risk-on risk-off trade primarily driven by European issues. With little data today, the markets will remain focused on global events and headlines. While the FED minutes didn’t have much new news, the FED remains ready to act (loonie bullish) if the economy gets worse. Look for the loonie to stay rangebound until further information on the eurozone recapitalization plan is released.
Today’s Range: 1.0150 – 1.0290
Daily Market | Knightsbridge Foreign Exchange
By Admin | October 14, 2011 | Daily Update |
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