7 Jun 2013
Flash: All eyes on the Calendar today - BMO Capital Markets
FXstreet.com (Barcelona) - BMO Capital Markets analysts note that flows are still very much mixed as we finally get to the big day everyone has been waiting for this week, with US and Canadian Payrolls upon us.
They note that the lower end of the recent range in USD/CAD gave way in spectacular fashion late yesterday on London close as the broad USD got a hammering across the G10 space. They write, “Stops got tripped through the recent lows at 1.0250/60, but decent demand emerged at 1.0200 and that area has held again overnight.” Further, they add that the crosses are still very mixed, with GBP/CAD breaking above 1.6000 yesterday, and EUR/CAD trading sharply higher after Draghi’s press conference. AUD/CAD, NZD/CAD and CAD/JPY still struggle to rally and these conflicting flows are really making it difficult to get a handle on the next moves in USD/CAD. JPY volatility has increased overnight and it feels like we will be in for a choppy day ahead. They finish by writing, “However, clearly the data this afternoon will be the main focus and we would expect USD/CAD to hold a tight range until then.”
They note that the lower end of the recent range in USD/CAD gave way in spectacular fashion late yesterday on London close as the broad USD got a hammering across the G10 space. They write, “Stops got tripped through the recent lows at 1.0250/60, but decent demand emerged at 1.0200 and that area has held again overnight.” Further, they add that the crosses are still very mixed, with GBP/CAD breaking above 1.6000 yesterday, and EUR/CAD trading sharply higher after Draghi’s press conference. AUD/CAD, NZD/CAD and CAD/JPY still struggle to rally and these conflicting flows are really making it difficult to get a handle on the next moves in USD/CAD. JPY volatility has increased overnight and it feels like we will be in for a choppy day ahead. They finish by writing, “However, clearly the data this afternoon will be the main focus and we would expect USD/CAD to hold a tight range until then.”