FX Morning Update October 26, 2011
USD/CAD Open: 1.0153-56 Overnight Range: 1.0113-1.0178
The Canadian dollar traded sideways overnight. Yesterday, the Bank of Canada did not change rates (as expected) but did continue to show signs of worry about the global outlook and did reduce the growth outlook for Canada next year. Oil is at $93.31 and gold is at $1,705. NY futures are slightly positive today. The US releases durable goods and new home sales data today. In Canada, the monetary policy report is released today.
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, 1.0005, 0.9980, and 0.9950.
The Bank of Canada didn’t raise rates as expected but seemed to lean towards keeping rates low for longer, dampening prospects for some loonie bulls that expected otherwise. The Monetary Policy Report today will provide some additional insight as to future policymaking thoughts. The markets will continue to be focused on the eurozone meetings to see if any concrete progress has been made. While many had expected a conclusion today, it appears that policymakers will delay important decisions. The loonie continues to be driven by overall risk sentiment, equity markets, and oil prices, much of which is being driven by European headlines of late.
Today’s Range: 1.0050 – 1.0195
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By Admin | October 29, 2011 | Daily Update | 0 comments