Good afternoon,
Below are the current daily levels vs. the other major
currencies.
USD.CAD 1.0449 up 0.30%
GBP.CAD 1.6782 up 0.29%
EUR.CAD 1.3984 down 0.67%
The ECB has removed any
chance of a EURO rally today after they slashed interest rates to 0.25% and caught
the market off guard. After the announcement was made, we saw the EUR/USD drop to
test the 1.3300 level, such drops are rarely sustainable and the rate has been
steadily rising all morning to where we presently trade at 1.3400. The Canadian dollar enjoyed gains of 1% against the Euro in the immediate aftermath of
the rate cut but like the EURO.USD currency pair the Loonie is quickly giving
back those gains .
According to ECB President Draghi,
there are no signs of deflation in the economy and the goal of today’s move was
to shorten the period of low inflation.
This is good opportunity for EURO buyers to make purchases with this
sudden drop.
We have seen very little volatility
with USD/CAD. That is likely to change
with the employment numbers due out tomorrow.
Estimates indicate that 13,000 jobs will be added to the Canadian
economy, this figure is notoriously difficult to predict and if the figure
comes in higher or lower than expected, we could see big movement in the
USD/CAD, make sure you get your orders in ahead of time, you don’t want extreme
volatility affecting your position.
The overnight expected range for the Canadian dollar against
the USD dollar 1.0403-1.0483
The overnight expected range for the Canadian dollar against
the Euro is 1.3944-1.4033
The overnight expected range for the Canadian dollar against
Sterling is 1.6730-1.6830
Enjoy your afternoon,
Barbara
Barbara Friedman |
GFX Partners Inc |Currency Advisor
No comments:
Post a Comment