Canadian Dollar Update August 4, 2015
USD/CAD Open: 1.3131-1.3132 Overnight Range: 1.3104-1.3177
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $45.95 and gold is at $1,092. 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 1.3175. Support is at 1.3078.
The Canadian dollar remains soft as oil prices continue to fall. The short-term risk for the Canadian dollar will be oil prices, as well as domestic data releases for employment and trade later in the week. In the medium-term, political uncertainty surrounding the Canadian federal election scheduled for October 19th will begin to arise. In the long-term, persistently low oil prices could result in another rate cut by the Bank of Canada in 2015, as they have proven to be very sensitive to oil prices in the past. US domestic data leading up to September’s FOMC meeting will be heavily scrutinized as the market continues to assess the likelihood of a September rate hike. The loonie is lacking catalysts in the short term.
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.
By Admin | August 4, 2015 | Daily Update |
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