Canadian Dollar Update January 16, 2017
USD/CAD Open: 1.3152-1.3153 Overnight Range: 1.3118-1.3164
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $52.20 and gold is at $1,203. US futures are lower. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3172. Support is at 1.3108.
The Canadian dollar is soft, opening slightly below last Friday’s levels. CAD has consolidated gains from last week, trading at the upper-end of its multi-month range. Trading is likely to be quiet today, as US bond and equity markets are closed for MLK day. The GBP is sharply lower as market participants look towards PM May’s Brexit speech on Tuesday.
The domestic calendar is busy this week, and event risk is resultantly elevated. Wednesday’s Bank of Canada meeting is week’s main event, as a more cautious tone is expected due to the recent deterioration of inflation measures. OIS is pricing in roughly 5bps of tightening from the BoC over the next 12 months. Several other data releases, including CPI and retail sales, are scheduled for the end of the week. Risk for CAD will remain raised throughout the week.
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 | January 16, 2017 | Daily Update |
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