FX Morning Update September 27, 2011
USD/CAD Open: 1.0242-45 Overnight Range: 1.0226-1.0281
The Canadian dollar gained some ground vs. the USD overnight as Asian and European markets were sharply positive. NY futures are pointing higher. Oil is higher $82.72 and gold is at $1,668. For today, S&P Case Schiller home price and consumer confidence data is released while GDP data is released at the end of the week. InCanada, a meeting between the PM and BoC Governor Carney takes place.
The short term Canadian dollar technicals remain negative. For today, USD resistance is at 1.0250, 1.0350, 1.0375, 1.0450, and 1.0510. Support is at 1.0213, 1.0131, 1.0091, and 1.0025.
The markets will continue to be focused on Europe as a meeting between German Chancellor and Greek PM takes place to discuss the next round of funding forGreece. The risk on trade today seems driven by rumors that a massive eurozone fund will be implemented to bolster European banks and protect those that have spent and borrowed beyond their means. It seems that with the recent downturn in equity markets, eurozone leaders may have finally realized that they need to get their act together. Once the market feels that eurozone banks will be protected, the risk-on trade could come back on in full swing targeting parity. Oil, gold, commodities, and equity markets are up, all signs of a risk on trade, and this bodes well for the loonie. However, there has been no substantial facts released about a larger bailout fund inEuropeand headlines will continue to create volatile trading.
Today’s Range: 1.0175 – 1.0310
By Admin | September 27, 2011 | Daily Update |
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