Daily FX Commentary, March 16, 2011
Wednesday, March 16, 2011 at 3:52PM
By Warren Hayhoe,
Columnist, Canadian Money Magazine
USD/CAD 0.9825
GBP/CAD 1.5820
EUR/USD 1.3960
GBP/USD 1.6110
EUR/CAD 1.3715
USD/JPY 8075
Oil opened at $97.18, currently $99.00Gold opened at $1392.80, currently $1403.60
Morning Observations:
Yesterday’s action packed session saw USDCAD claw its way back near parity on panic driven US dollar buying. Stop-loss and cross buying brought the pair to 0.9950-0.9975 before it promptly topped out and turned on its heels, leaving larger stops around parity intact. Since the move USDCAD has traded all the way back near 0.98 cents as the situation in Japan is now somewhat more measurable. North American equity markets spent most of the day gaining back ground lost at the opening bell and by the closing bell most indices had come back halfway and closed only a percent or so lower. That momentum carried over to the Japanese market as it showed signs of life by reclaiming 5.68% of the almost 17% it had lost over the previous two business days. Finally, as if the world wasn’t already chaotic enough let’s not forget the situation in the Middle East. Images yesterday of Bahraini rebels clashing with the GCC in the streets and news that Libyan leader Gadaffi had retaken yet another town are sure to play into global markets as other stories subside.
Today Canadian manufacturing sales and US building permits are due out at 8:30am but EURUSD direction and equity sentiment should be what directs the dollar today. Expected range in USDCAD: 0.9775-0.9875.
Thought of the Day
“A civilized society is one which tolerates eccentricity to the point of doubtful sanity.” -- Robert Frost
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