Daily FX Commentary, March 29, 2011
Tuesday, March 29, 2011 at 10:48AM By Warren Hayhoe,
Columnist, Canadian Money Magazine
USD/CAD 0.9770
GBP/CAD 1.5600
EUR/USD 1.4080
GBP/USD 1.5980
EUR/CAD 1.3750
USD/JPY 82.10
Oil opened at $103.98, currently $103.22Gold opened at $1419.90, currently $1414.60
Morning Observations:
Yesterday the Loonie remained in a somewhat lackluster 0.9742-0.9786 range against the US dollar. Despite softer commodity markets yesterday the Canuck buck was kept in demand via some M&A demand. News that Europe’s EDAS would be purchasing Toronto’s Vector Aerospace for in a cash deal worth 625M was one story and secondly the news that investment Canada approved the Walter Energy – Western Coal takeover which settles April 1st and is rumored to be about 2B in cash was CAD positive. Overnight the US dollar looked like it was going to resume it’s down trend until 5:00am this morning when St. Louis fed member Bullard took the stage in Prague and began talking about price normalization and QE2 reduction to the tune of ~100B. That prompted a 25pt gap lower in EURUSD, leaving the 1.4150 barrier intact. Datawise there is little out to get excited about, only US consumer confidence at 10:00am. With that said we expect more of the same range bound trading with a small bias to the upside. Keep in mind however that the 0.9740/45 has held three times and beyond that 0.9732 marks the low since the 0.9974 rally. A convincing break below these levels and we enter stop-loss selling territory which should illicit some choppy moves. So get your orders in; expected range in USDCAD: 0.9740-0.9815
Thought of the Day
“A people free to choose will always choose peace.” -- Ronald Reagan
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