Canadian Dollar Currency Exchange September 10, 2015
USD/CAD Open: 1.3261-1.3262 Overnight Range: 1.3185-1.3288
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $44.22 and gold is at $1,109. 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 1.3308. Support is at 1.3175.
Yesterday’s Bank of Canada meeting was as expected, with the BoC electing to hold rates. The tone of the release was less dovish than expected. Canada’s economic outlook remains uncertain, as the pernicious effect of low oil prices continue to trickle through the Canadian economy. Exchange rate sensitive exports have helped soften this impact, as the Canadian dollar remains weak. The Canadian path to economic normalization will be contingent on US economic growth, as the BoC believes non-energy led export growth to be critical to the Canadian economic recovery.
US import prices have fallen 11.4% YOY from August 2014 to August 2015. Lower import prices will do little to assuage Fed concerns regarding inflation. However, the labour market continues to show improvement in the US. September’s rate policy decision will be highly anticipated, as the possibility for a rate hike persists, despite being less likely due to recent concerns surrounding global economic growth. The Canadian dollar is likely to continue to trade in tandem with oil prices in the short-term. The largest risk today lies with EIA oil inventory releases, which could push oil prices lower.
While the Bank of Canada seemed more optimistic than expected, the Canadian dollar continues to lack catalysts in the short term and has been unable to sustain and hold any moves higher. Look for the Canadian dollar to follow oil prices directionally.
Today’s Suggested Range USD/CAD: 1.3200 – 1.3300
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 | September 10, 2015 | Daily Update |
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