Canadian Dollar Currency Exchange Morning Update September 5, 2014
USD/CAD Open: 1.0881-1.0884 Overnight Range: 1.0839-1.0903
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $94.40 and gold is at $1,268. US futures are mixed. Today, the US and Canada releases jobs data.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.0990. Support is at 1.0725.
The US economy added 142k jobs, well below expectations of 228k. While the data is negative, it could allow the FED to keep a lower interest rate environment for longer. Canada lost 11k jobs surprisingly, whereas a 10k gain was expected. The weak Canadian jobs data is negative for the Canadian dollar and this gives the Bank of Canada further room to sit on their neutral bias and push lower rates for longer. The Bank of Canada has made it clear that inflation and the economy needs to pickup before interest rates will be considered to move higher – this data doesn’t help the Canadian dollar. Geopolitical risks continue as NATO prepares new sanctions against Russia.
Today’s Suggested Range USD/CAD: 1.0810 – 1.0910
Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | September 5, 2014 | Daily Update |
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