FX Morning Update October 6, 2011
USD/CAD Open: 1.0418-20 Overnight Range: 1.0371-1.0438
The Canadian dollar traded in a tight range overnight. Overnight, the ECB left its interest rates unchanged. NY futures are pointing higher. Oil is higher at $79.96 and gold is at $1,640. Today, Canada releases Ivey PMI data and the US releases jobless claims data and ECB President also speaks today.
The short term Canadian dollar technicals remain negative. For today, USD resistance is at 1.0450, 1.0510, 1.0575, 1.0679, 1.0750, and 1.0850. Support is at 1.0373, 1.0250, 1.0213, and 1.0131.
It will be interesting to see if optimism from yesterday’s risk-on rally will follow through today as markets were optimistic to hear that the eurozone is working on a plan to recapitalize banks, but details have been lacking. Oil and equities were sharply higher and the loonie gained as well. It seems that the loonie may fare better if more details are released on a comprehensive recapitalization plan for the eurozone banks. The market will now position itself for upcoming jobs data and poor jobs data could cause a selloff in the loonie, while positive data would help the risk-on trade and the loonie.
Today’s Range: 1.0375 – 1.0525
Daily Market | Knightsbridge Foreign Exchange
By Admin | October 6, 2011 | Daily Update |
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