CanadianForex Daily Commentary - 29/12/2009
:: US Dollar vs Canadian Dollar: USD/CAD continues to grind lower and has broken below the 1.0400 level for the first time since October 21. Some more C$ positive M&A flow has added to the gains as China Railway Construction Corp has offered C$679 million for Canadian owned Corriente Resources Inc. Technical targets are now focused on the old low of 1.0205. The markets are still thin and obviously caution is required.
- We expect a range today in USD/CAD rate of 1.0320 to 1.0450.
:: Canadian Dollar vs Euro and Japanese Yen: EUR/CAD is unchanged as recent CAD strength seems to be pausing around the psychological 1.5000 zone. German state CPI data points to a pick-up in inflationary pressure, after five states reported data that showed monthly gains between 0.8% and 0.9%. CAD/JPY has traded higher with negligible Yen flows and a surging Canadian dollar.
- We expect a range today in the EUR/CAD rate of 1.4925 to 1.5075 and in the CAD/JPY rate of 87.50 to 89.00.
:: Canadian Dollar vs British Pound, Australian Dollar and New Zealand Dollar: GBP/CAD has dropped with Sterling sentiment negatively impacted by a CIPD report suggesting that UK unemployment will likely continue to rise in the first half of 2010, peaking at approx. 2.8M by next summer. AUD/CAD rose when Australian equity markets jumped to a 9-week high overnight, as markets re-opened after a holiday break. NZD/CAD is mirroring the AUD/CAD
:: Data Releases:
:: Note: The above exchange rates are based on "interbank" rates. If you are considering a transfer then please login, register or call us for a live dealing rate.
- CAD: No Data
- USD: S&P/CS Composite-20 HPI y/y, CB Consumer Confidence
- AUD: No Data
- EUR: German Prelim CPI m/m
- GBP: Housing Equity Withdrawal q/q
- JPY Manufacturing PMI
- NZD: No Data
Regards,
CanadianForex Dealers
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