Canadian Dollar Currency Exchange Update August 21, 2015
USD/CAD Open: 1.3081-1.30820 Overnight Range: 1.3059-1.3111
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $40.96 and gold is at $1,155. US futures are lower. Today, Canada released both retail sales and CPI figures.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3157. Support is at 1.3041.
The Canadian dollar has continued to trade within a narrow range in the month of August. Today, Canada released CPI data for July, as well as retail sales figures for June. July CPI figures narrowly missed expectations, growing 0.1% against an expectation of 0.2% growth. However, retail sales figures were very strong, doubling the expectation for 0.3% by growing 0.6%. On balance, the data was positive, especially in the midst of capricious oil prices, which resultantly led to a modest Canadian dollar appreciation. Finally, some positive news for the Canadian dollar.
The possibility for another rate cut in 2015 from the Bank of Canada persists, especially with oil’s recent test of the $40/barrel level. More negative data coming out of China is punishing equities across the globe, and putting additional pressure on US inflation figures. The effect of poor Chinese manufacturing figures has had a muted effect on the Canadian dollar. The uncertainty surrounding the current global economic picture could delay the Fed’s timeline for a rate hike.
In the short term, the biggest driver of the Canadian dollar continues to be the US Fed rate hike timing.
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 21, 2015 | Daily Update |
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