Daily Forex Commentary
26 October 2012 - Markets are being driven by disappointing earnings posted in the U.S.
By Frederick Cheng
US Dollar vs Canadian Dollar
USD/CAD is higher in this back drop, having tested recent highs near the .9980 level overnight. As previously mentioned, significant resistance at .9990-1.0000 (where the 100 & 200 day moving averages reside) and the pivotal 1.0050 level should cap initial USD strength. A move above these levels will be deemed very bullish USD and would prompt a return to higher levels, targeting 1.0150-1.0275. I don’t believe we will see any impulsive moves to the top side as slow, grinding moves have been characteristic of recent market trends. The .9900-.9925 zone looks to be decent support for now.We expect a range today of 0.9924 to 1.0000
Canadian Dollar vs Euro
An article in today’s FT about a possible Finnish exit from the euro is garnering some attention today but that is just white noise for the time being. The euro is, however, weaker this AM, as a steady stream of poor European data this week has taken its toll, topped off by Spanish unemployment still at a staggering 25% in this morning’s release.We expect a range today of 1.2823 to 1.2903
Canadian Dollar vs British Pound, Australian Dollar and New Zealand Dollar
The Sterling is finishing this week strong as this week’s data paints a better outlook for UK’s growth outlook. GBP/CAD ran into resistance at 1.6075 which has capped the pair’s advance since June of this year. AUD/CAD continues to trade higher against the Loonie. The pair will trade with general market sentiment as there are no new data being released. Resistance and support comes in at 0.0268 and 1.0350. NZD/CAD is holding into this week’s gains. The pair is currently testing its resent high at 0.8185. A close above this level will open the doors for 0.8267 and 0.8402.Data Releases
CAD: No data today
AUD: No data today
EUR: Gfk German Consumer Climate, Spanish Unemployment Rate
GBP: No data today
JPY: No data today
NZD: No data today
USD: Advance GDP q/q, Advance GDP Price Index q/q, Revised UoM Consumer Sentiment, Revised UoM Inflation Expectations
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