Daily FX Commentary,October 31, 2011
Monday, October 31, 2011 at 5:30PM
By Warren Hayhoe,
Columnist, Canadian Money Magazine
Expected USD/CAD range: 0.9900-1.0050
Expected GBP/CAD range: 1.5875-1.6125
Expected EUR/CAD range: 1.3900-1.4100
Expected GBP/USD range: 1.5950-1.6075
Expected EUR/USD range: 1.3950-1.4100
Expected USD/JPY range: 77.00-79.00
Oil opened at $93.32 currently $92.77Gold opened at $ 1743.43, currently $1723.45
Morning Observations:
The ghost that is the Bank of Japan finally showed up, putting their money where their mouth was and intervened in currency markets last night. A breach of 75.50 finally prompted the BoJ to sell large sums of yen shooting the price of USDJPY to a 79.53 high in a little under 30 minutes. Since then USDJPY has slide back 150 pts after a what looks like a temporary peg failed at 79.20. The move helped the US dollar across the board and a ‘risk-off’ backdrop to today’s session helped the big dollar to even further gains. The EURUSD traded under 1.40 for the first time since Thursday’s 1.4250 high provoked by the EU deal. Interesting to note that today is JC Trichet’s last day on the job, leaving Mario Draghi in control of the ECB. While he gets his first day off with a bank holiday tomorrow, he will have some big decisions to make right out of the gate this Thursday when the ECB announces their interest rates.
Turning to today we get October’s Canadian GDP print at 8:30am which is expected to be roughly in line with the last two months at 0.2%. Chicago PMI numbers are out shortly after that and finally China manufacturing data due later in the evening. It’s month end and given the good month for equities flow is suspected to be US dollar negative. Expected range in USDCAD: 0.9900-1.0050
Thought of the Day
“A civilized society is one which tolerates eccentricity to the point of doubtful sanity.”
Robert Frost
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