Canadian Dollar Currency Exchange Update August 5, 2015
USD/CAD Open: 1.3139-1.3141 Overnight Range: 1.3128-1.3213
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $46.27 and gold is at $1,089. US futures are lower. Today, Canada releases merchandise trade data.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3227. Support is at 1.3120.
The Canadian dollar continues to trade in a narrow range early in the week. Canadian merchandise trade data exceeded expectations, with exports rising 6.6%, ending five straight months of decline, and imports falling by 0.6%. This trade data is encouraging, as it is a positive indication that Canada is on the Bank of Canada’s non-energy export-led path to normalization.
Additionally, ADP employment figures were released this morning. The ADP numbers were weak, indicating Friday’s non-farm payroll figures could also be weak. Dennis Lockhart, president of the Atlanta Fed, said he is in favour of a September rate hike provided there is no major weakness in upcoming domestic data. A September rate hike would buoy an already strong US dollar. Oil prices as well as relative monetary policy will remain key drivers of the Canadian dollar throughout the end of 2015.
Today’s Suggested Range USD/CAD: 1.3100 – 1.3200
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 5, 2015 | Daily Update |
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