FX Morning Update September 16, 2011
USD/CAD Open: 0.9836-39 Overnight Range: 0.9829-0.9861
The Canadian dollar traded quietly overnight in a tight range. Yesterday, the ECB and other central banks coordinated action to indicate they would provide USD liquidity to banks in Europe, which helped boost euro bank stock prices and overall market sentiment. NY futures are pointing lower. Oil is at $88.73 and gold is at $1,786. Consumer sentiment data is released today.
The short term Canadian dollar technicals remain negative and the USD/CAD continues to trade within its recent sideways trading range as it has over the last several weeks. For today, USD resistance is at 0.9950, 1.0025 and 1.0060. Support is at 0.9850, 0.9797, and 0.9700.
The central bank liquidity announcement boosted market sentiment ensuring that eurozone banks are not exposed to liquidity crunch. The issue continues to be sovereign debt – French banks are highly exposed to Greek debt, exposing their banking system, and as a result the banking system of other countries. Eurozone finance ministers are meeting today discussing remedies to the situation and markets are looking for coordinated action to provide confidence to the market. Volatility is expected to continue as traders deal with eurozone headlines and determine if a real recovery will take place in the latter half of the year. Economic growth can’t be helped by the continuous volatility and negative headlines. Next week’s FOMC meeting is what traders will be positioning for.
Today’s Range: 0.9805 – 0.9905
Daily Market | Knightsbridge Foreign Exchange
By Admin | September 16, 2011 | Daily Update |
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