Canadian Dollar Morning Update February 4, 2016
USD/CAD Open: 1.3685-1.3686 Overnight Range: 1.3638-1.3799
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $32.14 and gold is at $1,153. 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 1.3971. Support is at 1.3508.
The US dollar has severely underperformed in the G10 space over the last several sessions, as market participants begin to reconsider the 2016 rate hike timeline proposed by the Fed last year. Fed speakers have begun “watchful waiting”, assessing global growth concerns that could jeopardize US economic growth. The Canadian dollar has benefitted tremendously of late, with a 7.5% rally off of the multi-year lows against the US dollar posted January 20th.
Oil prices have once again stabilized over $30/barrel, but monetary policy convergence has been the main catalyst for the Canadian dollar’s rally. It remains to be seen how much lift the Loonie will be able to muster with oil prices at persistently low levels.
Today’s Suggested Range USD/CAD: 1.3650 – 1.3750
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 4, 2016 | Daily Update |
0 comments