Daily FX Commentary, March 22, 2011
Tuesday, March 22, 2011 at 1:51PM
By Warren Hayhoe,
Columnist, Canadian Money Magazine
USD/CAD 0.9755
GBP/CAD 1.5980
EUR/USD 1.4240
GBP/USD 1.6380
EUR/CAD 1.3895
USD/JPY 80.90
Oil opened at $102.33, currently $102.18Gold opened at $1426.40, currently $1427.20
Morning Observations:
Overnight global markets traded generally higher led by the Nikkei which closed up over 4% a few hours ago. In currency markets the commodity based currencies are higher again this morning while US dollar continued its decent lower after the dollar index broke its long-term support last week. It’s also worth mentioning that the EURUSD is nearing the significant levels. Long-term resistance and the November 4th highs are muddled in the 1.4280 area and should provide some resistance today(see chart below). Lastly, UK inflation surprised markets to the upside overnight and the pound sterling jumped to levels not seen since January of 2010 versus the US dollar.
The majority of the data comes from Canada today, beginning with retail sales at 8:30am. There are rumors of a surprise number to the upside which has us looking for a little more Loonie strength this morning. Later in the afternoon however the risk would conceivably be to the right hand side with the constant real possibility of a shock to the market from Libya, Japan, or the EU at any time which would depress markets (and the Loonie). Couple that with the impending uncertainty surrounding the federal budget release at 4:00pm today where all eyes will be on Mr. Layton and his decision whether or not to support the budget. Expected range in USDCAD: 0.9720-0.9820
Thought of the Day
“Against the assault of laughter nothing can stand.” -- Mark Twain
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