Canadian Dollar and US Dollar Currency Exchange Update August 20, 2015
USD/CAD Open: 1.3099-1.3100 Overnight Range: 1.3094-1.3177
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $40.78 and gold is at $1,141. 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 1.3206. Support is at 1.3053.
Despite yesterday’s busy US schedule, the Canadian dollar remains trading within the range seen throughout the week. US CPI data narrowly missed expectations, but proved to not be a market mover. However, yesterday’s FOMC July meeting minutes hinted at a moderation of Fed expectations for a rate hike, pressuring the US dollar. This change in relative policy would normally lend strength to the Canadian dollar, but oil prices dropped to fresh multi-year lows yesterday, threatening to test the $40/barrel level. Oil’s 4% drop yesterday raises further questions about future Canadian monetary policy, as the BoC has reacted to oil price changes multiple times already in 2015. In the short-term, the focus for the Canadian dollar will continue to be oil prices, with relative monetary policy becoming increasingly important as we move closer towards the September BoC and FOMC meetings.
The Canadian dollar is facing the perfect storm with falling oil prices, a nervous Bank of Canada, a weak Canadian economy, and a strengthening US dollar.
Today’s Suggested Range USD/CAD: 1.3050 – 1.3150
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 20, 2015 | Daily Update |
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