FX Morning Update September 20, 2011
USD/CAD Open: 0.9915-18 Overnight Range: 0.9883-0.9941
The Canadian dollar lost some ground overnight. Markets continue to be dominated by eurozone headlines. The S&P downgradedItalyovernight but had limited impact on markets. The Bank of Greece made some required coupon payments today, calming fears of a default. NY futures are pointing higher. Oil is at $86.72 and gold is at $1,797. Today, leading indicators and wholesale sales data are released, BoC Carney speaks, and theUSreleases housing starts data and the FED starts a two day meeting.
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 0.9950 and 1.0025. Support is at 0.9850, 0.9797 and 0.9700.
Worries thatGreeceis running out of money continue to haunt equity markets, while rumors thatGreeceis close to receiving its next tranche of bailout funds is boosting market sentiment. We could see a strong risk-on trade if markets confirmGreeceis receiving its next tranche of bailout funds, while the loonie could test parity if headlines indicate there is disagreement ifGreeceshould continue to receive bailout funds. Look for the loonie to continue to trade within its sideways trading range and based on eurozone headlines driving the direction.
Today’s Range: 0.9850 – 0.9975
By Admin | September 27, 2011 | Daily Update |
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