Good Afternoon
USD.CAD has moved higher this morning recovering about half its losses from yesterday. The price of crude seemed to play an important part in today’s move as a big price drop in the barrel of oil (and all commodities) helped to push the Loonie lower.
USD.CAD has moved higher this morning recovering about half its losses from yesterday. The price of crude seemed to play an important part in today’s move as a big price drop in the barrel of oil (and all commodities) helped to push the Loonie lower.
Market trading as been overly light this morning as the currency
markets still await the US Federal Reserve announcement scheduled for 2:15 pm. Our
expectation is still that the rates will not change and
there seems to be a consensus that there will be a continuation of
quantitative easing to inject money into the market. This easing will help the
US economy grow which is needed after the lower than expected GDP and Chicago
Index numbers earlier this week.
As we expected this morning’s
release of the ADP private employment report disappointed the market with only
119K new jobs have being created, the numbers out of the US continue to
disappoint.
The Euro has strengthened today continuing to increase in value
even after speculation that the ECB will make a rate cut at
their meeting tomorrow, this should have made traders cautious when trading this currency
but this does not seem to be the case, the
value of the Euro has been going up all day reaching highs earlier this
morning. There are a few reasons for this movement even ahead of the ECB
meetings, the Cypriot parliament passing the bailout package and the
Italians forming a new government may be giving currency traders some comfort
that there is room for the Euro to strengthen.
Yonah
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