|
|
Daily Forex Commentary
Tuesday, 6 January 2009 - Market Commentary:: US Dollar vs Canadian Dollar: The USD continues to strengthen against most currencies except the traditional commodity currencies of CAD, AUD & NZD. Most notably EUR has been sold off aggressively once again as the pre-Christmas rally has seen a 10% retracement as the market eyes further ECB rate cuts next week. USD/CAD briefly tested key resistance at 1.2000 in London but has settled in under 1.1900 as oil has rallied above $49.00. We still have a short term target of 1.1600 with 1.1200 possible.
- We expect a range today in USD/CAD rate of 1.1750 to 1.2000.
:: Canadian Dollar vs Euro and Japanese Yen: EUR/CAD has continued it’s free fall hitting a low of 1.5800 so far. Support comes in now at 1.5700 and 1.5500 with a move above 1.6000 signaling a pause in the down move. CAD/JPY has stopped just under key resistance at 80.00 as the Canadian Dollar continues to play catch up with oil strength.
- We expect a range today in the EUR/CAD rate of 1.5700 to 1.6000 and in the CAD/JPY rate of 78.00 to 80.50.
:: Canadian Dollar vs British Pound, Australian Dollar and New Zealand Dollar: The Canadian Dollar is still posting steady gains against GBP with BOE interest rate cuts in the forefront. It is also culling recent losses against the antipodeans just as slowly as it lost ground. Commodity prices will be the key determinant vs these two crosses with strong oil prices meaning CAD strength.
:: Data Releases:
- CAD: RMPI m/m, IPPI m/m
- USD: ISM Non-Manufacturing PMI, Pending Home Sales m/m, Factory Orders m/m, FOMC Meeting Minutes
- AUD: Retail Sales Trend m/m, HIA New Home Sales
- EUR: Final Services PMI, CPI Flash Estimate y/y
- GBP: Nationwide HPI m/m, Services PMI
- JPY Monetary Base y/y
- NZD: Trade Balance, ANZ Commodity Prices m/m
|
|
|
sitemap 
Add to your favorites 
