FX Morning Update October 25, 2011
USD/CAD Open: 1.0001-05 Overnight Range: 0.9995-1.0049
The Canadian dollar grinded higher overnight. Oil is much higher at $94.31 and gold is at $1,661. NY futures are flat today. The Bank of Canada releases its key interest rate decision today and retail sales data is also released today. In the US, Case Schiller and consumer confidence data are released.
The short term Canadian dollar technicals remain negative but a close near parity could start a new Canadian dollar uptrend. For today, USD resistance is at 1.0057, 1.0131, 1.0213, 1.0250, 1.0373, and 1.0450. Support is at 1.0005, 0.9980, and 0.9950.
All eyes today are on the Bank of Canada interest rate policy and corresponding comments. Rates are not expected to change today. Inflation has been near the upper end of the range, and while risks remain from the eurozone, economic data has not been recession like, probably allowing the Bank of Canada to be more hawkish than conservative. The trump card remains Europe and markets continue to await announcements from the eurozone on bank recapitalization, Greece debt haircut details, eurozone and ECB contributions. Much optimism has been priced in to the market and any sign of divergence or delay in approach could cause a flock to the USD. Look for the loonie to continue its uptrend of late if more concrete details are released on the eurozone recapitalization plan.
Today’s Range: 0.9950 – 1.0075
Daily Market | Knightsbridge Foreign Exchange
By Admin | October 29, 2011 | Daily Update |
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