FX Morning Update October 14, 2011
USD/CAD Open: 1.0173-76 Overnight Range: 1.0161-1.0236
The Canadian dollar gained in overnight trading following European equity markets higher. Overnight, S&P downgraded Spain to AA- but markets didn’t flinch. Oil is at $85.37 and gold is at $1,676. NY futures are pointing higher. Today, retail sales, import data, and Univ. of Michigan consumer survey is released today in the US.
The short term Canadian dollar technicals remain negative while above parity. 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.
Central bankers from G20 countries will be meeting in Paris and the European sovereign debt issue will surely be discussed, including involving the IMF in bailout talks. The key concern remains to determine if European banks have enough capital if Greece defaults. Italian PM Berlusconi needs to survive a confidence vote on Friday or more uncertainty could enter the picture in the region. While the market feels eurozone policymakers have a plan to recapitalize banks, the risk-on trade seems to be in effect. In the context that there is now a sense of urgency to fix the eurozone issues, the loonie should do well if corporate earnings beat the street and equity markets rise.
Today’s Range: 1.0100 – 1.0245
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By Admin | October 14, 2011 | Daily Update | 0 comments