FX Morning Update October 20, 2011

USD/CAD Open: 1.0161-64 Overnight Range: 1.0131-1.0248

The Canadian dollar was choppy and very volatile in overnight trading as it tries to find direction. Yesterday, the loonie rally fizzled out along with equity markets as optimism turned sour on eurozone bailout possibilities but sentiment may turn the other way today based on some new policymaker comments overnight. Oil is at $86.51 and gold is at $1,623. NY futures are slightly positive. US data being released include leading indicators , Philly Fed, and jobless claims data and Canada releases wholesale sales.

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.

The market continues to see-saw risk-on and risk-off on a daily basis driven by headlines that the bailout is either closer to being accomplished or not. Traders continue to bite on every headline, which just shows how important the eurozone recapitalization plan is to global markets, as even small rumors drive big moves in the market. The USD/CAD has seen resistance near the high 1.02’s and support just above parity of late trading in between this range. Markets seemed to be focused on the upcoming EU summit and eurozone headlines seem to be the key factor driving global market sentiment and direction. Expect jittery markets to continue and a possible big move at the conclusion of the summit as policymakers may reveal the real status of the eurozone bailout fund. Canada and US data only seem to be a minor point in moving USD/CAD at this time but Canadian CPI data is a key event tomorrow as it has implications for the BoC’s rate policy.

Today’s Range: 1.0090 – 1.0190

Don't Waste Money With Banks.
Get Exchange Rates Up to 2% Better With KnightsbridgeFX

Get An Exchange Quote Now

Daily Market | Knightsbridge Foreign Exchange

Get Started With Knightsbridge Foreign Exchange


Get Your Free Quote


Book Foreign Exchange Rate


Send Funds



Step 1 : Get Your Free Quote

You completed 0% of your profile.

First Name *

Last Name *

Address *

City *

Province *

Postal Code *

Phone *

Email *

Occupation *

Date of Birth *

Please provide the reason for buying or selling the currency: *

(Travel, Bills to Pay, Purchase or Sale of Investment, etc.)

Please explain how you first obtain the source of funds being sold: *

(such as: Work Income, Sale of Investment, Gift, Inheritance, etc)

Are you or any close relative a Politically Exposed Foreign Person? *

(Head of State, Member of Senate, House of Commons, or Legistrature, etc)



I confirm I am not transacting on behalf of a third party and I have read and I agree to the Terms and Conditions

By Admin | October 21, 2011 | Daily Update | 0 comments