Canadian Dollar Currency Exchange – September 4, 2015
USD/CAD Open: 1.3182-1.3183 Overnight Range: 1.3160-1.3240
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $46.62 and gold is at $1,122. US futures are lower. Today, both Canada and the US release jobs data for August.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3302. Support is at 1.3149.
In the wake of this morning’s dual employment release, the Canadian dollar remains trading in the range seen consistently this week. The Canadian economy added 12,000 jobs in August, against expectations of -5,000. However, the unemployment rate crept up from 6.8% to 7.0%. US jobs data was soft, only creating 173,000 jobs against expectations of 218,000. US unemployment has improved to 5.1%, the lowest level since April of 2008.
The strong Canadian jobs data is a positive sign and could show that things are turning around in Canada and Canada could have weathered the storm. A lot of negative sentiment is built in to the Canadian dollar at the moment, so a few strong job data gains in the upcoming months could change the direction of the loonie sharply. The domestic economy, China’s growth, and oil prices still will direct the Canadian dollar.
All signs point towards the US labour market being very strong, despite this month’s miss. The Canadian jobs data suggests that the Canadian economy is treading water but could be turning things around. This month’s employment data will factor in as an important data point for both central banks at this month’s meetings. The US economy looks poised for a rate hike, with unemployment at 5.1% and PCE inflation growing at 2.2% YOY since January. It’s uncertain if concerns about global economic growth will make the Fed more cautious in respect to the timing of a rate hike. The Canadian dollar will likely continue to trade in this range until next week’s BoC meeting on Wednesday.
Today’s Suggested Range USD/CAD: 1.3150 – 1.3250
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 4, 2015 | Daily Update |
0 comments