Canadian Dollar Forex Update February 24, 2016
USD/CAD Open: 1.3831-1.3832 Overnight Range: 1.3770-1.3859
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $30.93 and gold is at $1,235. US futures are lower. There are no major data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3900. Support is at 1.3736.
The Canadian dollar is trading at the lower end of its recent range, as market participants look towards next month’s major events for guidance. In the middle of March, we will see a BoC rate decision, Fed rate decision, and a Federal budget for Canada. Markets do not seem to think the Fed will raise rates again in the short-term, but the Fed remains open to the idea, especially with wage and inflation data being strong of late.
In Canada, the BoC outlook remains extremely uncertain, and will likely remain opaque until the Federal budget is revealed. Deficit spending will take some pressure off the Bank of Canada, as the BoC believes fiscal policy measures are very effectively in a low interest rate environment. For today, expect the Canadian dollar to follow broader market risk appetite in the absence of domestic data.
Today’s Suggested Range USD/CAD: 1.3800 – 1.3900
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.
By Admin | February 24, 2016 | Daily Update |
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