KnightsbridgeFX Morning Update September 8, 2011

USD/CAD Open: 0.9837-40  Overnight Range: 0.9830-0.9865

The Canadian dollar gained some ground overnight.  NY futures are pointing lower.  Overnight., the ECB left its lending rate unchanged as did the Bank of England.  Yesterday’s Bank of Canada rate announcement indicated there would be no change for some time, without specifics, citing eurozone and global growth concerns.  Oil is higher at $89.39 and gold is at $1,852.  Trade balance, building permits, Bernanke’s speech, and Obama’s jobs speech is the key data to watch.

The short term Canadian dollar technicals remain negative but the USD/CAD has also been rangebound and mixed, looking for direction as it has traded sideways for several weeks.  For today, USD resistance is at 0.9850, 0.9905, 0.9930, 0.9950, 0.9975, and 1.0009.  Support is at 0.9797, 0.9747, and 0.9700.

Bernanke’s speech this afternoon may further indicate what the FED can do to stimulate the economy, which should be loonie bullish if he provides strong details.  Obama’s jobs speech is expected to be grand, but congress may start to bicker and prevent any stimulative policy. Global central banks have stopped their rate hike cycle as they try to stimulate global economies as a priority.  Look for continued rangebound trading in the loonie, following equities and oil, and expect any grand announcements perhaps to create some volatility.  Canadian employment data on Friday will be a key datapoint to watch to determine the health of the Canadian economy.

Today’s Range: 0.9790 – 0.9890

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By Admin | September 8, 2011 | Daily Update | 0 comments