Daily FX Commentary, March 8, 2011
Tuesday, March 8, 2011 at 3:39PM
By Warren Hayhoe,
Columnist, Canadian Money Magazine
USD/CAD 0.9730
GBP/CAD 1.5730
EUR/USD 1.3910
GBP/USD 1.6165
EUR/CAD 1.3530
USD/JPY 82.60
Oil opened at $105.44, currently $105.00Gold opened at $1434.50, currently $1433.70
Morning Observations:
Commodity markets are taking a breather this morning after another volatile up and down day of trading yesterday. Reports out of Libya that Gaddafi was on his way out quickly deflated the price of oil until those were dispelled and then it was President Obama’s stern words to Libyan rebels. All this price action in commodity markets and the Loonie still managed to remain range bound between 0.9700-0.9750. It’s a growing inevitability that one of these days the Loonie is going to make a break, in which direction is of course the question. If you ask me it feels like Loonie has been given ample opportunities to appreciate in the last week and time after time says: “no thank you”. The US dollar on the other hand can’t catch a break. Conflict in the Middle East and unrest in the Eurozone should have helped to US dollar to some healthy gains; however the selling of the Greenback has been relentless since mid-February. Something has to give, and maybe not today, maybe not even this week but before too long we’re bound to see a correction. Datawise today there is only Canadian housing starts out at 8:15am which likely won’t cause more than a blip in the USDCAD price. Support comes in at 0.9700 again today while resistance at 0.9750 looks slightly more vulnerable with stops building over 55 and 75. Expected range in USDCAD today: 0.9700-0.9775
Thought of the Day
“Fear of death increases in exact proportion to increase in wealth.” -- Ernest Hemingway
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