Canadian Dollar Currency Exchange Update June 18, 2015 – Loonie Soars on Weak US Dollar
USD/CAD Open: 1.2134-1.2135 Overnight Range: 1.2131-1.2239
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $60.48 and gold is at $1,202. US futures are higher. Today, the US releases CPI data.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2094. Support is at 1.2291.
The Canadian dollar has strengthened on the heels of broad-based USD weakness following yesterday’s Fed meeting. Fed sentiment was softer than expected, as the Fed stated the importance of a gradual path towards normalization. Experts were expecting a more optimistic tone in respect to the improving employment picture, but the Fed continues to wait for more data to support the notion that the economy is recovering. A rate hike in the latter portion of 2015 remains a possibility. The Fed indicated rate hikes will come at a slower pace and that took some steam out of the US dollar longer term outlook. Future rate hikes will be slower for longer.
May CPI figures were released for the US today, falling just short of expectations. In the absence of other major data releases, the Canadian dollar should track the broader market. The Canadian dollar still lacks many catalysts due to the Bank of Canada cautious outlook and flat oil prices, the recent increase in the Canadian dollar is a US dollar story.
Today’s Suggested Range USD/CAD: 1.2100 – 1.2200
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | June 18, 2015 | Daily Update |
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