CAD Gains More Against USD Than Other Major Currencies by GoLearnForex

USD/CAD:

Since November 6^th, amongst the G-10 the CAD has gained more than any other currency versus the greenback.  The CAD has gained 2.71% through November 11^th.  We will present 2 reasons for this move.  The Canadian Dollar lost the most amongst the G-10 in the weeks prior to November 6^th.  It began with the BOC cautioning the markets about its remaining tolerance of a strong Canadian Dollar.  That was followed by a couple of poorer than expected economic releases.

The Dollar during that period of time strengthened as well when risk aversion was back.  Doing a straight current price comparison most of the G-7 has since returned to their respective levels prior to the Dollars run.  The only currency that did not retrace most its losses was the CAD. Once the other pairs abutted their support and resistance levels they began to consolidate.  The Canadian Dollar still had further room to appreciate versus it prior loss and it has.

INSERT CHART

The second reason that we alluded to earlier can be seen by the formation of a Descending Triangle.  Trend is clearly still favoring the Canadian Dollar. The bottom line of the triangle represents short term S&R. On the top line, the slope of the hypotenuse, represent the trend.  As price trades with the trend line towards S&R we anticipate a breakout to occur.  You can see that we have just broken below short term S&R, thereby advancing the CAD even further.

Quiet USD Rally as Gold Continues to Climb the Charts by GoLearnForex

Global Equity Markets advanced again on Wednesday.  In the U.S the DJIA closed up 44.29 points to 10,291.26 in lighter than normal volume due to the Holiday.  The Dollar strengthened later in the day after the DXY briefly touched below 75.00 The Sterling came in as the big loser giving up 1.05% to trade at 1.6570, while the CAD advanced again today up nearly .4% to 1.0450.

In spite of the quiet Dollar rally Gold continued its climb to close at 1,118 and a gain of $12.  Investors tend to buy Gold when economic times are uncertain.  The purchase of large amounts of Gold by India and Sri-Lanka last week, in addition to the G-20 summit in which all members agreed to maintain quantitative easing programs for as long as necessary, have led investors to believe Gold will be in demand for quite some time to come. Oil was flat for a second day in a row closing below 79.50.

This week has been light in the way economic releases.  Tomorrow, Australia’s Unemployment figures are set to print.  We would expect that if these numbers underperform that the AUD will lose some of it strength given the current stance of the Australian Central Bank.  In the U.S. Continuing Claims and Initials Claims are due out and although they are a weekly print, it may confirm the dismal employment situation in the U.S.  Traders are looking for any signs that the employment situation is improving and therefore they will be watching these weekly numbers closely.

Upcoming Forex Events for November 12, 2009

EUR Industrial Production (MoM) Forecast  0.60%  Previous  0.90%

USD MBA Mortgage Applications  Previous    8.20%

USD Initial Jobless Claims Forecast    512.00K  Previous  512.00K

EUR ECB President Trichet Speaks

Analysis by http://www.golearnforex.net