Canadian Dollar Update September 22, 2016
USD/CAD Open: 1.3021-1.3022 Overnight Range: 1.3000-1.3107
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $46.29 and gold is at $1,341. US futures are higher. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3169. Support is at 1.2959.
Yesterday’s Fed meeting resulted in a rate hold, as expected. Three district Fed Presidents offered dissenting votes, with the Fed acknowledging the case for higher rates has strengthened. Despite the hawkish tone, market participants are still having difficulty taking the Fed at their word, as evidenced by the broadly lower US dollar. The Fed has shown a willingness to maintain an environment of low rates, as evidenced by the lack of rate hikes thus far in 2016, when four were originally predicted. The Fed rate hike timeline will continue to be the most important narrative in FX markets towards the end of 2016.
Today’s Suggested Range USD/CAD: 1.3000 – 1.3100
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 | September 22, 2016 | Daily Update |
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