FX Morning Update September 28, 2011
USD/CAD Open: 1.0218-20 Overnight Range: 1.0185-1.0260
The Canadian dollar lost some ground overnight as there were reported divisions between eurozone members on next steps for policy. Yesterday, Greece passed new taxes and swore in blood they would meet new targets while asking for bailout funds. NY futures are pointing higher. Oil is at $83.65 and gold is at $1,648. Today, durable goods data and a Bernanke speech are released today.
The short term Canadian dollar technicals remain negative. For today, USD resistance is at 1.0250, 1.0350, 1.0379, 1.0450, and 1.0510. Support is at 1.0213, 1.0131, 1.0091, and 1.0025.
Yesterday’s risk on rally was spurred by rumors that a major bailout fund is in the making, similar to TARP, that would protect Eurozone banks in the event of a default. That risk on rally dissipated overnight on concerns that splits remain between eurozone members on the best next steps moving forward. Greece’s budget cutting plans are on heavy scrutiny as international policymakers from the ECB and IMF visit Greece to investigate. Risk appetite doesn’t seem as flush today as it was yesterday and markets remain heavily focused on trying to determine if the Eurozone can implement policy with confidence that will solve the eurozone debt issues. This remains the key factor that is causing wild swings in currency markets. There is little Canada can do or is doing to soften these swings in currency markets as Canada is impacted by the tides of the Eurozone seas. The loonie continues to follow oil prices directionally and look for the loonie to continue to be jittery as volatility is expected to continue.
Today’s Range: 1.0150 – 1.0275
Daily Market | Knightsbridge Foreign Exchange
By Admin | September 30, 2011 | Daily Update |
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