FX Morning Update September 19, 2011
USD/CAD Open: 0.9807-10 Overnight Range: 0.9766-0.9848
The Canadian dollar grinded lower overnight. Coordinated action from Central banks on Friday was sufficient to start the risk on trade on Friday but concerns overGreecefunding and a potential default has moved equity markets lower and a flight to safety to the USD. Germany’s ruling party lost another election making their coalition even shakier. NY futures are pointing lower. Oil is at $86.86 and gold is at $1,812. InCanada, leading index and wholesale sales (Tuesday), inflation (Wednesday), and retail sales (Thursday) data will be released. The FED starts a two day meeting tomorrow.
The short term Canadian dollar technicals remain negative and the USD/CAD continues to trade within its recent sideways trading range of 0.9750 to 0.9975. For today, USD resistance is at 0.9850, 0.9950, and 1.0025. Support is at 0.9797 and 0.9700.
Concerns that Greece will not be able to meet its fiscal targets is front and center as lenders may not want to extend any further cash to Greece if they cannot continue to cut spending. Greeceappears to have cash until mid-October but many believeGreeceneeds to do more cutting to meet austerity measures imposed by lenders. All eyes are on Greece and their ability to meet austerity measures and on the upcoming Fed meeting to determine what tools are available to boost the US economy and commodities (bullish for the loonie).
Today’s Range: 0.9795 – 0.9895
By Admin | September 27, 2011 | Daily Update |
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