Canadian Dollar Currency Exchange Update July 15, 2015 – Bank of Canada Control’s Loonie’s Fate
USD/CAD Open: 1.2772-1.2774 Overnight Range: 1.2723-1.2776
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $52.43 and gold is at $1,151. US futures are flat. Today, the Bank of Canada releases its rate decision.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2797. Support is at 1.2710.
The Canadian dollar is weak in anticipation of today’s BoC rate decision and subsequent press conference. The US dollar made modest gains on the heels of Fed Chair Yellen’s statement reaffirming the possibility of a rate increase in 2015. Today’s Bank of Canada rate decision will generate some volatility, as expectations of a rate hike are partially priced in. A rate cut will hurt the Canadian dollar in the short-term, as it will call into question the Bank of Canada’s ability to accurately forecast, after predicting a rebound in the second quarter of 2015. Moreover, an interest rate cut will create a flow of funds out of Canada and yields are lower and less attractive.
Relative monetary policy will continue to drive the USD/CAD for the foreseeable future, as the Fed continues to be increasingly hawkish on its path to economic normalization.
Today’s Suggested Range USD/CAD: 1.2700 – 1.2850
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 | July 15, 2015 | Daily Update |
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