Canadian Currency Update March 20, 2015 – Weak Retail Says
USD/CAD Open: 1.2654-1.2656 Overnight Range: 1.2641-1.2724
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $43.68 and gold is at $1,171. US futures are positive. Today, Canada releases inflation data and retail sales data.
The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.2890. Support is at 1.2511.
USD/CAD has been see-sawing after the FED’s most recent policy announcement. Many analysts are torn as to when the next FED interest rate hike will come. Inflation data released this morning in Canada was broadly in line with expectations. Canadian retail sales fell more than expected at -1.7% compared with a -0.7% expectation. Many analysts still expect the Bank of Canada to cut interest rates one more time in the next 12 months. The Canadian dollar has been jittery over the last few days, seeking direction, as much of the movement has been driven by central bank policy expectations, which has only created more volatility. The main catalysts for the Canadian dollar remain central bank policy divergence, the oil price outlook, and labor market data.
Today’s Suggested Range USD/CAD: 1.2600 – 1.2700
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange
www.knightsbridgefx.com
By Admin | March 20, 2015 | Daily Update |
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