Tuesday, April 20, 2010

The Advisor Weblog

The Advisor Weblog

Cad under parity after BOC

Posted: 20 Apr 2010 07:29 AM PDT

USD/CAD fell to an intraday low of 0.9980 coming from a 1.0142 high, after the hawkish BOC statement published one hour ago, where the Bank decide to keep their overnight rate at 0.25%, yet also announce that “in Canada, the economic recovery is proceeding somewhat more rapidly than the Bank had projected in its January Monetary Policy Report” and that “with recent improvements in the economic outlook, the need of extraordinary policy is now passing, and it is appropriate to begin to lessen the degree of monetary stimulus.”

They also remarked that this will depend on the the outlook for economic activity and inflation, and will be consistent with achieving the 2 % inflation target, while an update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published next Thursday, April 22th.

Technically, and despite rally left the pair in oversold territory, we remain strongly bearish in the cross, consolidating barely above mentioned 0.9980. Next support in the pair comes at the 0.9950 area, weekly low, followed by 0.9920. Parity is now firs resistance level to watch during corrective movements, that could also extend to 1.0030 whit out harming the trend. Next resistance area, above mentioned 1.0030 comes close to 1.0070/80 zone, not seen at this point.

Best pair to trade now: EUR/USD

Posted: 20 Apr 2010 03:54 AM PDT

Majors’ sentiment for today

Posted: 20 Apr 2010 02:47 AM PDT

Majors’ sentiment for today:

Eur/Usd: Bullish

Gbp/Usd: Bullish

Usd/Chf: Bearish

Usd/Jpy: Bullish

Eur/Gbp: Bearish

Eur/Jpy: Bullish

Gbp/Jpy: Bullish

Starting the day

Posted: 20 Apr 2010 02:40 AM PDT

Hi everyone and welcome to this blog. As comment during past Asian daily Wrap Up webinar, dollar and yen are losing ground steadily, as confidence hit the wires: late yesterday, Citigroup announced better than expected results for the last quarter, giving the kick off to risk appetite; hawkish RBA minutes push aussie back higher, while news this early European morning are supporting Pound and Euro pretty well: GBP/USD is back to 1.5400 on higher than expected CPI readings, while Euro regained the 1.3500 after up-beating ZEW data. AS comment early yesterday, dollar and yen winnings were a bit to much, with no real reasons. Anyway! I will start with the technicals in a couple of minutes, yet don’t forget we have rates in Canada later today; expected with no changes, I do believe there is a chance of surprises there. Here is the link for today’s calendar:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great day! 
Posted by at 6:09 PM

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