Daily FX Commentary, March 10, 2011
Thursday, March 10, 2011 at 4:37PM
By Warren Hayhoe,
Columnist, Canadian Money Magazine
USD/CAD 0.9705
GBP/CAD 1.5660
EUR/USD 1.3830
GBP/USD 1.6140
EUR/CAD 1.3420
USD/JPY 82.95
Oil opened at $104.38, currently $102.57Gold opened at $1429.60, currently $1419.10
Morning Observations:
There’s no shortage of news to talk about this morning as overnight financial markets held more surprises that a Charlie Sheen rant. First Spain’s credit rating was cut by Moody’s, couple that with soft German trade numbers and you have the euro trading all the way back to the 1.38 handle. Then there was the 7.3B trade deficit number released from China, yes that is correct a trade Deficit. Chinese New Year last month, the spike in oil prices and the importation of mass amount of tiger blood are understood to be the reason. Said news has the currency landscape shifting in the US dollar’s favor and once again the dollar index has managed to skating just above long term trend support. We’ve already seen trade numbers from China and Germany, still to come is the US and Canadian figure. Watch for the Canadian figure at 8:30am, if the spike in oil prices can swing China to a deficit then theoretically it could well do the opposite for a net exporter like Canada.
USDCAD is currently trading at its 24-hour high (0.9710) a figure which has capped USDCAD rallies a few times overnight now. Beyond that level the 0.9745/55 area (the high for the past 5 days) should hold some selling interest if global markets continue their tailspin. However, if my Canadian trade theory hold true support on the down side is at 0.9684, 0.9667, 0.9635. Expected range in USDCAD today: 0.9684-0.9745
Thought of the Day
“Men are like steel. When they lose their temper, they lose their worth.” -- Chuck Norris
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