Kathy Lien: USD/CAD Comes Within a Whisker of YTD Low
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July 25th, 2009 by Kathy Lien
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This comment is courtesy of Kathy Lien, Director, Currency Research, GFT (Global Forex Trading).*
With no economic data from any of the 3 commodity producing countries, the Canadian, Australian and New Zealand dollars traded higher. Finance Minister Jim Flaherty confirmed the comments made by the Bank of Canada this week. He said he sees encouraging signs that the domestic economy is stabilizing and there is potential for growth in the third and fourth quarters, but he is worried about the impact of the strong Canadian dollar. The loonie came within a whisker of testing its year to date high. In the week ahead, outside of GDP numbers on Friday, there is no market moving Canadian data on the calendar. Therefore we expect the loonie to key off oil prices. Should crude heads towards $70, USD/CAD could fall to a new yearly low. If it simply stabilizes here or falls, we may see a sharp rebound in the currency pair. There were no exciting developments for the Australian or New Zealand dollars but that could change next week with the Reserve Bank of New Zealand meeting to discuss monetary policy. Australian Central Bank Governor Stevens will also be delivering a speech on the “Challenges for Economic Policy.” For the NZD and AUD, official comments will be key.
Source: GFT Forex/FX360.com, July 24, 2009
Kathy Lien is an Internationally Published Author and the Director of Currency Research of FX360.com and GFT. As Director of Currency Research, Kathy is responsible for providing research and analysis for GFT. She also runs an FX Signal Service BKForex Advisor, with Boris Schlossberg – one of the few investment advisory letters focusing strictly on the 3 Trillion/day FX market. Kathy is a “Trader First, Analyst Second.” She publishes both technical and fundamental research reports, market commentaries and trading strategies. A seasoned FX analyst and trader, Kathy has direct interbank experience. Prior to joining GFT, Kathy was the Chief Strategist of DailyFX.com and worked in JPMorgan Chase’s Cross Markets and Foreign Exchange Trading groups using both technical and fundamental analysis to trade FX spot and options. She also has experience trading a number of products outside of FX, including interest rate derivatives, bonds, equities and futures. She has taught seminars around the world on day and swing trading the currency market. Kathy frequently appears on CNBC, Bloomberg, and BNN as a expert commentator on currency markets. Read more from the author/contributor here.
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