Daily FX Commentary, March 31, 2011
Thursday, March 31, 2011 at 10:08AM
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:
Month end and quarter end related flows are playing into the currency movement this morning. The US dollar is being sold against most major crosses, particularly the euro which is supposedly partially related to rebalancing some USD positions linked to the USDJPY intervention buying seen in this middle of this month. The euro has traded as high as 1.4233 versus the greenback this morning, first major resistance from here is 1.4249/50 (March 22nd high/2011 high). The Canadian dollar remained in a relatively tight overnight range given the movement elsewhere, essentially trading in the same 35pt range as yesterday. Along with the end of month action we are also expecting GDP figures from Canada and unemployment claims from the US. USDCAD support remains at 0.9667 and 0.9650 and barring a surprising GDP print we expect those levels to hold, expected range in USDCAD: 0.9675-0.9740
Thought of the Day
“Extreme positions are not succeeded by moderate ones, but by contrary extreme positions.” -- Friedrich Nietzsche
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