Daily FX Commentary, March 17, 2011
Thursday, March 17, 2011 at 3:13PM
By Warren Hayhoe,
Columnist, Canadian Money Magazine
USD/CAD 0.9875
GBP/CAD 1.5920
EUR/USD 1.4015
GBP/USD 1.6130
EUR/CAD 1.3830
USD/JPY 78.55
Oil opened at $97.98, currently $99.78Gold opened at $1396.10, currently $1400.00
Morning Observations:
Wild movement in currency markets overnight were led by the Japanese yen as it traded to post WWII highs versus the US dollar on frantic stop-loss buying. The USDJPY closed at 79.80 at 5:00pm EST yesterday, resting just above the April ’95 low of 79.75. In illiquid markets late day selling pushed the pair through that level and into the plethora of stops below. It was then compounded by JPY stops through other crosses and from there it was all over, the USDJPY pair traded to 76.36 before rumors of coordinated G7 intervention took it back into the 78’s. Aside from the madness that went on with the yen the rest of the currency markets traded with a bit better risk appetite. The dollar index is now firmly through its long-term trend support of 76.20 we’ll now look for a close under that figure to solidify the Greenbacks current slide. The Canadian dollar was just along for the ride overnight as it traded in the middle of the currency pack. It’s a busy day on the data front with CPI, unemployment claims, and the Philly Fed all due out of the states. If we were lacking volatility in February, March is more than making up for it so be sure to leave resting orders with your trader for any short-term needs. Today I’m a better seller in any USDCAD rallies up to 0.9940/60 risking parity for a move back to 0.97 cents. Expected range for the day in USDCAD: 0.9825-0.9925
Thought of the Day
“I don't build in order to have clients. I have clients in order to build.” -- Ayn Rand
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