Canadian Dollar Currency Exchange Morning Update June 23, 2014

USD/CAD Open: 1.07350-1.0737 Overnight Range: 1.0716-1.0760

The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $107.04 and gold is at $1,313. US futures are flat. Today, the US releases existing home sales data.

The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.1180 and 1.1260. Support is at 1.0710 and 1.0610.

Overnight, better than expected Chinese manufacturing data, hitting a 7 month high, has boosted the Canadian dollar and risk appetite. The Canadian dollar continues to benefit from stronger than expected CPI data last week and Friday’s momentum has carried forward today. The focus continues to be in determining how the Bank of Canada will react in the face of rising inflation. If the Canadian dollar continues to increase sharply, we may see the Bank of Canada increase rhetoric favoring a lower Canadian dollar in the short term to boost exports and growth.

Today’s Suggested Range USD/CAD: 1.0700 – 1.0800

Rahim Madhavji | Knightsbridge Foreign Exchange
T: 416-274-9332 | T: 1-877-355-KBFX (5239) ext. 101 | Trading Floor: 416-479-0834 |
100 King Street West, First Canadian Place | Suite 5700 | Toronto | Ontario | M5X 1C7
www.knightsbridgefx.com

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By Admin | June 23, 2014 | Daily Update | 0 comments