FX Morning Update October 24, 2011
USD/CAD Open: 1.0073-76 Overnight Range: 1.0050-1.0100
The Canadian dollar traded sideways overnight and maintained its gains achieved on Friday. Overnight, China PMI was stronger than expected and there were no major announcements from the EU summit. Oil is higher at $87.87 and gold is at $1,661. NY futures are flat today. The Bank of Canada releases its key interest rate decision tomorrow.
The short term Canadian dollar technicals remain negative while above parity. For today, USD resistance is at 1.0131, 1.0213, 1.0250, 1.0373, and 1.0450. Support is at 1.0057 and 1.0005.
Markets are expecting further announcements on Wednesday in regards to the EU summit results and this will be watched closely. Q3 earnings have been decent, oil prices have move higher, and overall risk sentiment is positive and this bodes well for the loonie. Caterpillar earnings have provided a boost to markets today as their global pipeline remains strong. Despite positive Chinese PMI data, eurozone PMI data was negative, highlighting the risk that the EU could move back in to a recession. The markets remain focused on Europe to determine overall risk sentiment, while economic data has been muddling along supporting risk currencies. Expect announcements from Europe to move markets in a big way.
Today’s Range: 1.0010 – 1.0125
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By Admin | October 24, 2011 | Daily Update | 0 comments