USD.CAD has moved lower towards parity pushing it out of the
narrow range that it had been trading in for some time. We were expecting increased volatility over the next few days as traders prepare for the employment numbers
which will be released at the end of the week. This is a good move out of the recent
range and the Canadian Dollar continues its
trend to gradually strengthen.
In a day without a
lot of data being released the main release was the Canadian new home construction figures. These numbers were slightly
disappointing coming in very
close to expectation with an
actual value of 174.9k new
homes being started.
The Euro has
regained nearly all its losses after their decision to cut interest rates last
week, and it continues to climb
against the USD and CAD. The Euro continues to gain ground on the
back of positive economic data over the past couple of days, we shall see over
the next few weeks if it can maintain that momentums.
Looking forward to tomorrow
morning we get the release of the Bank of England interest rate announcement,
we are expecting no change in their interest rate policy but currency
traders will pay close attention to any changes to the stimulus program that
the BOE has in place. Economic numbers have not been great out of the UK lately
so it will be interesting to see if they stay the course or increase their bond
buying program. Once again we look for the Canadian Dollar to trade in a tight
overnight range as the market awaits the jobs report on Friday
Yonah
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