Canadian Dollar FX Morning Update September 25, 2015
USD/CAD Open: 1.3325-1.3326 Overnight Range: 1.3305-1.3355
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $45.42 and gold is at $1,144. US futures are higher. There are no major data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3399. Support is at 1.3274.
The Canadian dollar remains weak late in the weak, opening today at levels slightly higher than the 11 year lows set yesterday. Revised US GDP figures for the second quarter showed 3.9% growth against expectations of 3.7%, adding more fuel to the proverbial fire for a rate hike this year. Fed Chair Yellen spoke yesterday, echoing the sentiment of Vice-Chair Fischer, expecting conditions to be met for a rate hike in 2015. The probability of a rate hike in 2015 is over 50%, so it’s safe to assume this as the base-case for the US economy through the end of the year. The Fed is looking to shock markets as little as possible with the timing of the first hike, so expect more transparency in subsequent Fedspeak in an attempt to prime markets for the inevitable hike. The Canadian dollar continues to lack a catalyst in the short-term, and in the absence of domestic data releases, should follow the broader market tone.
Today’s Suggested Range USD/CAD: 1.3250 – 1.3350
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 | September 25, 2015 | Daily Update |
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