Canadian Dollar Update February 21, 2017
USD/CAD Open: 1.3143-1.3144 Overnight Range: 1.3098-1.3163
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $54.40 and gold is at $1,229. US futures are higher. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3178. Support is at 1.3089.
The Canadian dollar is a relative performer this morning, lower amidst an environment of broad-based USD strength. Hawkish comments from the Fed’s Harker has brought the USD higher, after he reaffirmed that a March rate hike is still on the table. Markets are now pricing in a 36% of a 25bps rate hike in March.
Key drivers for CAD are shifting towards central bank policy, as there is renewed focus on the March Fed meeting. CAD has largely ignored a significant rally in oil, which is approaching 12 month highs, suggesting a disconnect. We expect monetary policy to be an increasingly prominent driver for CAD moving towards the March Fed meeting in the United States.
Today’s Suggested Range USD/CAD: 1.3100 – 1.3200
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
Knightsbridge Foreign Exchange has based the opinions expressed herein on information generally available to the public. Knightsbridge Foreign Exchange makes no warranty concerning the accuracy of this information and specifically disclaims any liability for trading decisions based on the opinions expressed and information contained herein. Such information and opinions are for general information only and are not intended to present advice with respect to matters reviewed and commented upon.
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By Admin | February 21, 2017 | Daily Update |
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